Danisco

12:54 AM

Danisco, Shares of Danisco Denmark has jumped more than 26% Monday after the group of food ingredients has agreed to be acquired by DuPont in a $ 6.3 billion deal.

DuPont / quotes/comstock/13 *! Dd / quotes / nls / dd (DD 49.76, -0.22, -0.44%) said Sunday it will pay to 5.8 billion in cash for Danisco / quotes/comstock/11i! Dnsof (DNSOF 92.45, 0.45, 0.49%) and take around 500 million and debt of the company.

Danisco produces food ingredients specialist such as emulsifiers and sweeteners, and also has a large business enzymes, with customers in the textile sector, the industries of biofuel and biodefense.

DuPont said the company would be a tight fit with its own nutrition and Applied Biosciences Divisions.

Laurence Alexander, ananlyst at Jefferies & Co., said in a note to clients that DuPont has been more vocal about the possibilities of industrial biotechnology than any other large North American company. He added that the division of food ingredients would fill gaps in DuPont “farm to fork” strategy.

Danisco shares have rallied about 26% to Copenhagen to 668 kronor ($ 115.7), slightly above the offer price of 665 crowns.

SEB Enskildaanlyst Henrik Simonsen said that if another bidder cannot be excluded, DuPont is the most likely buyer because it already operates a joint venture with Danisco ethanol.

DuPont said it would finance the transaction with approximately $ 3 billion and existing cash, the rest from debt. The transaction is expected to close early in the second quarter and provide a lift to earnings in 2012.

For 2011, the acquisition is expected to reduce reported earnings by between 30 cents and 45 cents per share, DuPont said. The group of chemicals already had a profit of 2011 between 3.30 and 3.60 and $ a share.

“This transaction is a perfect fit with our strategic growth opportunities and we will help resolve global challenges presented by the dramatic growth of population in coming decades, particularly related to food and energy,” said CEO Ellen Kullman DuPont in a statement.

“In addition, biotechnology and specialty food ingredients have the potential to change the industry landscape, such as substituting renewable materials for the processes of fossil fuels and to meet food needs in developing economies”, Kullman added.


No Response to “Danisco”

Leave a Reply