Charles Holliday

DuPont Buying Danisco for $5.8B

U.

S. chemicals group DuPont said on Sunday it will buy Danish food ingredients and enzymes firm Danisco for $5.8 billion to boost its position in the fast-growing food sector.The cash deal would enable DuPont to enter a niche in the chemical industry - food additives - long dominated by smaller rival International Flavors and Fragrances Inc. It would also solidify existing cooperation between the two companies in the field of technology for advanced bioethanol.However the acquisition will reduce DuPont's 2011 earnings of $3.30 to $3.60 per share by a range of 30 cents to 45 cents per share, the company said.The deal is structured as a public tender offer valuing Danisco's shares at 665 Danish crowns in cash per share.Danisco's shares closed on Friday at 530 crowns, meaning the deal is at a 25 percent premium to its closing share price."The board of directors of Danisco has unanimously resolved that it intends to recommend that shareholders accept the offer," Danisco said in a statement...

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