Tessenderlo takes FMC stake

Belgian-based industrial company Tessenderlo Group has made an equity investment of about $400 million in agricultural sciences company FMC Corporation. Upon completion it will own approximately 20% of the outstanding shares of FMC common stock. 

“Our investment in FMC perfectly aligns with Tessenderlo Group’s strategy to expand our agro platform,” commented Luc Tack, CEO of Tessenderlo Group. FMC, he added, has “meaningful long-term potential driven by a new generation of proprietary molecules that are renewing its portfolio and strengthening its competitive position”.

This concludes the exploration of strategic options FMC’s board began in February. It will use the proceeds to pay down debt, bringing it nearly half way to its $1 billion target. For Tessenderlo it is a continuation of recent moves to unlock capital, sharpen its strategic focus and improve financial flexibility. 

These have included amending its revolving credit facility to achieve “significant” covenant relief; raising $1.2 billion in a secured high-yield bond offering; selling its Indian business for $252 million; a new supply and license agreement with Corteva that involves a $200 million payment; and a framework agreement for a $114 million sale and leaseback of its property in Newark, Delaware.