U.S. manufacturing group E.I. du Pont de Nemours & Co. (NYSE: DD) announced Sunday it would buy Danish food ingredients company Danisco A/S (PINK: DNSOF) for $6.3 billion to broaden its presence in the fast-growing biofuels and food sectors.
DuPont will pay $5.8 billion cash and also assume $500 million in Danisco's debt. The company expects the deal to establish it as a leader in industrial biotechnology and help it successfully address global issues in food production and fossil fuel reduction.
"Danisco has two well-positioned global businesses that strongly complement our current biotechnology capabilities, R&D pipeline, and specialty food ingredients, a combination that offers attractive long-term financial returns," DuPont Chief Executive Officer Ellen Kullman said Sunday in a statement. "This also would create new opportunities across other parts of the DuPont portfolio, including traditional materials science offerings."