FMC Corporation (NYSE), a global leader in agricultural sciences, has signed a definitive agreement to sell its Global Specialty Solutions (GSS) business to Environmental Science US, LLC, known as Envu, for $350 million, subject to closing adjustments.
In November 2023, FMC announced its intention to explore strategic options for GSS, which offers products for non-crop markets such as golf courses, sports stadiums, and pest control. FMC is focusing on the global crop protection market, and GSS no longer fits its long-term strategy.
“Global Specialty Solutions is a profitable business with a strong history of growth. We believe this agreement with Envu will provide the attention and resources it needs to continue thriving,” said Pierre Brondeau, FMC Chairman and CEO. “With this divestment, FMC can focus solely on its core business.”
Envu, acquired by private equity firm Cinven in 2022, specializes in environmental science and views GSS as a key part of its growth strategy.
“We are excited by the prospect of joining forces with the GSS business,” said Gilles Galliou, Envu CEO. “We see significant synergies and potential for accelerated innovation from the combination. As a successful outcome of a carveout transaction ourselves, we believe we are the ideal partner to help GSS through this transition.”
Marco Strizzi, Senior Principal at Cinven, added: “We see FMC GSS as a compelling 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 year-end 2024, subject to regulatory approval and customary closing conditions. FMC plans to use the proceeds from the sale for debt reduction.
BofA Securities and McCarter & English advised FMC, while Barclays and Baker McKenzie advised Envu. Further terms of the agreement were not disclosed.
