JOIN USBoth companies have presence in India. As part of the deal, DuPont would shell out cash worth $5.8 billion apart from assuming Danisco’s debt to the tune of $500 million.
“This transaction would establish DuPont as a clear leader in industrial biotechnology with science-intensive innovations that address global challenges in food production and reduced fossil fuel consumption,” DuPont said. The deal, is expected to close in 2011 second quarter.
DuPont would fund the transaction with $3 billion in existing cash and remaining amount through debt.DuPont and Danisco are already joint venture partners in the development of cellulosic ethanol technology. The acquisition would create new opportunities across various parts of DuPont portfolio, including traditional materials science offerings, he added.
Danisco’s specialty food ingredients — that includes enablers, cultures and sweeteners — generates about 65 per cent of the company’s total sales.