FMC Corp Agrees to Sell Indian Crop Protection Business to Crystal for $252 Million
FMC Corporation to Sell Indian Business to Crystal Crop Protection for $252 Million
FMC Corporation, a leading US agricultural sciences company, has announced plans to sell its Indian commercial business to Crystal Crop Protection Ltd for a total consideration of $252 million. This strategic move is aimed at reducing debt and allowing the company to refocus its resources on higher-growth markets.
The deal, which is subject to regulatory approval and customary closing conditions, is expected to be completed in the coming months. FMC will direct all proceeds from the sale towards debt reduction, a key objective in its ongoing effort to improve its financial performance. The company had previously expressed its intention to exit the Indian crop protection commercial operations by July 2025, paving the way for a new go-to-market strategy and redeployment of capital to other areas.
Under the terms of the transaction, Crystal Crop Protection will acquire FMC India's commercial operations in the crop protection segment, including a license to use FMC's brands sold in the country. Additionally, Crystal will receive a preferred supply agreement for certain FMC active ingredients and formulated products, as well as preferred access to FMC's pipeline of active ingredients in India.
FMC will continue to generate cash from the India business until the deal closes, primarily through the monetization of working capital. The company will maintain a presence in India through global research and development activities and manufacturing operations.
The acquisition is expected to bolster Crystal Crop Protection's position in the Indian market, enabling it to accelerate innovation across chemical and biological crop protection and provide Indian farmers with broader access to novel products.
Key Players Involved
- FMC Corporation: a leading US agricultural sciences company
- Crystal Crop Protection Ltd: an Indian company acquiring FMC's Indian commercial business
- Pierre Brondeau: FMC's chairman, chief executive, and president
- Ankur Aggarwal: Crystal Crop Protection's chairman and managing director
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Financial and Legal Advisers
- BofA Securities: exclusive financial adviser to FMC
- Davis Polk & Wardwell LLP: US legal adviser to FMC
- Khaitan & Co: Indian legal adviser to FMC
- EY: advisory firm to Crystal Crop Protection
- Shardul Amarchand Mangaldas & Co: legal counsel to Crystal Crop Protection
Investor Takeaway
FMC Corporation is selling its Indian crop protection business to reduce debt and refocus resources.
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