Tessenderlo Group invests $400 million to support FMC expansion
FMC Corporation and Belgium-based Tessenderlo Group have entered into an agreement that will see Tessenderlo make a strategic investment of approximately $400 million in FMC.
Under the agreement, Tessenderlo Group will acquire a minority ownership position in FMC through the purchase of shares priced at $13.30 each. Following completion of the transaction, Tessenderlo is expected to own about 20% of FMC's outstanding shares.
Company leaders said the investment reflects confidence in FMC's future and its growing portfolio of agricultural technologies.
"Our investment in FMC perfectly aligns with Tessenderlo Group's strategy to expand our agro platform through strategic cornerstone investments whereby we take a minority position in high-quality companies. FMC offers an attractive opportunity to invest in a business with meaningful long-term potential driven by a new generation of proprietary molecules that are renewing its portfolio and strengthening its competitive position," said Luc Tack, chief executive officer, Tessenderlo Group.
FMC's leadership stated that the agreement follows a thorough review of strategic options that began earlier this year. The company plans to use the investment proceeds to reduce debt and reach its target of approximately $1 billion in debt repayment.
"This agreement follows a comprehensive and deliberate process, and our Board is confident that entering into this agreement is the best path forward for our company and its shareholders," said Pierre Brondeau, chairman, chief executive officer and president.
In recent months, FMC has also taken several actions to strengthen its financial position. These steps include amending its revolving credit facility, raising $1.2 billion through a secured bond offering, agreeing to sell its India commercial business for $252 million, signing a strategic agreement with Corteva that includes a $200 million prepayment, and arranging a $114 million sale and leaseback transaction involving its Delaware property.
Company officials said these efforts are designed to improve liquidity, increase financial flexibility, and sharpen FMC's strategic focus.
FMC plans to continue investing in research and development while accelerating the commercialization of new agricultural innovations. The company believes the combination of financial improvements and strategic initiatives will help support future growth and deliver value to shareholders.
The transaction remains subject to customary closing conditions and regulatory approvals.
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