FMC agrees to sell GSS business to Envu

Philadelphia, Pa.-based FMC Corp., a leading global agricultural sciences company, has signed a definitive agreement to sell its Global Specialty Solutions (GSS) business to Environmental Science US, LLC, known as Envu, based in Cary, N.C. Envu will purchase the GSS business for $350 million U.S., subject to closing working capital adjustment.

In November 2023, FMC announced plans to explore strategic options for GSS, which includes a line of products that serve a diverse mix of non-crop markets such as golf courses, professional sports stadiums and pest control. “As FMC concentrates on innovating products and services for the global crop protection market,” the news release states, “GSS no longer has a clear, strategic role in the company’s mid- or longer-term goals.”

Envu, which was acquired by international private equity firm Cinven in 2022, is solely dedicated to the environmental science sector and sees GSS as “an opportunity to support its growth strategy while continuing to deliver powerful innovations for customers in professional pest management, turf & ornamentals and more,” the news release states.

“As a focused company that is dedicated to delivering forward-thinking solutions for our customers, we are excited by the prospect of joining forces with the GSS business,” Envu CEO Gilles Galliou said in the news release. “We see significant synergies and potential for accelerated innovation from the combination. In addition, as the successful outcome of a carveout transaction ourselves, we believe we are the ideal partner to help GSS through this transition and maximize our collective potential.”

The transaction is expected to close by year-end 2024, subject to regulatory approval and other customary closing conditions. FMC intends to allocate all proceeds from the sale to debt reduction.

BofA Securities acted as financial adviser and McCarter & English was legal adviser to FMC, while Barclays acted as financial adviser and Baker McKenzie was legal adviser to Envu for the transaction. Further terms and conditions of the agreement were not disclosed.