FMC Sells Global Specialty Solutions Business to Envu for $350 Million

FMC Corporation, a leading global agricultural science company, announced that it has signed a definitive agreement to sell its Global Specialty Solutions (GSS) business to Environmental Science US (Envu), an environmental science company providing innovative technologies that protect and improve the health of the global environment.

Envu will acquire the GSS business for a purchase price of $350 million, subject to final working capital adjustments.

In November 2023, FMC announced plans to explore strategic alternatives for GSS, which includes a portfolio of products serving a variety of non-crop markets including golf courses, professional sports stadiums and pest control.

Pierre Brondeau, Chairman and CEO of FMC, said: "Global Specialty Solutions is a profitable business with a strong history of growth. We believe this agreement with Envu will provide it with the attention and resources it needs to continue to thrive. With this divestment, FMC can focus on its core business."

Envu, which was acquired by international private equity firm Cinven in 2022, specializes in the environmental sciences sector and sees GSS as an opportunity to support its growth strategy while continuing to deliver strong innovation to customers in areas such as professional pest management, turfgrass and ornamentals.

"As a company focused on delivering forward-thinking solutions to our clients, we are excited about the prospect of combining our businesses with GSS. We believe the combination will deliver significant synergies and the potential for accelerated innovation. Furthermore, as a result of a successful divestiture transaction, we believe we are the ideal partner to help GSS through this transition and maximize our joint potential," said Gilles Galliou, Envu CEO.

"We are excited to bring together two well-respected, complementary businesses that share a common focus on delivering seamless client service and product innovation in the attractive environmental sciences market," added Marco Strizzi, Senior Principal at Cinven. "We believe FMC GSS is an attractive addition to Envu strategically and financially and look forward to continuing to support the combined business' strong growth trajectory."

The transaction is expected to close by the end of 2024, subject to regulatory approvals and other customary closing conditions. FMC intends to use all proceeds from the sale to reduce debt.

BofA Securities served as financial advisor to FMC and McCarter & English served as legal advisor, while Barclays served as financial advisor to Envu and Baker McKenzie served as legal advisor. Further terms and conditions of the agreement have not been disclosed.