DuPont to buy FMC division that owns Rockland seaweed processor
Photo / FMC Corp.
FMC Corp., owner of this Rockland seaweed processing plant, announced Friday that the plant, which is the city's largest taxpayer and employer, is part of a sale of FMC's Health and Nutrition business to DuPont.
FMC Corp., the owner of a Rockland seaweed processor, announced on March 31 that the manufacturing plant is being acquired by DuPont as part of a transaction involving FMC’s Health and Nutrition business.
The seaweed processing plant is Rockland’s largest employer and taxpayer, according to the Rockland Courier Gazette.
DuPont (NYSE:DD) said the acquisition of FMC's Health and Nutrition business is part of an agreement to divest a portion of its crop protection business in order to gain approval of its proposed merger with The Dow Chemical Co. from the European Commission. The merger with Dow is expected to close between Aug. 1 and Sept. 1.
In a joint release, DuPont stated that as part of the transaction agreement, it will acquire FMC’s Health and Nutrition business, “which generated more than $700 million in revenues in 2016” and includes the Rockland plant. FMC, in turn, will acquire the portion of DuPont's crop protection business required to be divested by a European Commission ruling related to DuPont's merger with Dow Chemical.
"FMC Health and Nutrition is a highly profitable business with leading positions across the vast majority of its portfolio, deep applications knowledge and an extensive global network of laboratories and manufacturing facilities," FMC President, CEO and Chairman Pierre Brondeau said in the release. "It is a very complementary fit with DuPont's current portfolio. We are confident it will thrive under DuPont's leadership and will contribute to their successful Nutrition & Health business."
The Rockland Courier Gazette reported that a spokesman for FMC confirmed that DuPont’s acquisition of FMC’s Health and Nutrition division included the Rockland carrageenan manufacturing plant. It has been owned by the Philadelphia based company (NYSE:FMC) since 1977.
“We do not have any specifics about the future of our sites at this time, but as a longstanding institution in this community, we recognize the importance of the partnerships we’ve developed and the impact we’ve made in the neighborhoods where we operate,” FMC spokesman Dwayne Roark told the newspaper. ““We will share updates as we learn more about our transition with DuPont following the close of this agreement.”
FMC’s Rockland plant employs 107 people and is the largest property taxpayer in Rockland, with a valuation on its land, buildings and equipment of $20.9 million that resulted in payment of $454,000 in property taxes to the city in 2016, the newspaper reported.
Carrageenan is a common food additive extracted from red seaweed that is used for its gelling, thickening and stabilizing properties.
FMC shares spiked by more than $8 on Friday after the news was announced, ending the day at $69.60.
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