FMC Corporation FMC shares are trading higher today. The company finalized an agreement to sell its Global Specialty Solutions (GSS) business to Environmental Science US, known as Envu, for $350 million, subject to closing working capital adjustment.
FMC plans to use the proceeds from the sale to reduce debt. The transaction is expected to close by the end of 2024, pending regulatory approval and other customary conditions.
Marco Strizzi, Senior Principal at Cinven, said, “We are delighted to bring together two highly respected, complementary businesses with a shared focus on delivering seamless customer service and product innovation in the attractive environmental science market.”
“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.”
Notably, in November 2023, FMC disclosed plans to explore strategic alternatives for its GSS business, which serves diverse non-crop markets such as golf courses, sports stadiums, and pest control.
Last month, FMC’s Board of Directors appointed Pierre Brondeau as chief executive officer and board chairman. He succeeded Mark Douglas, who stepped down after more than 14 years with the company.
The company plans to release its second quarter 2024 earnings on July 31, 2024.
Investors can gain exposure to the stock via First Trust Materials AlphaDEX Fund FXZ and Global X AgTech & Food Innovation ETF KROP.
Price Action: FMC shares are up 0.35% at $56.90 premarket at the last check Friday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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