FMC Corp. shares are surging after the crop-protection maker landed an unexpected backer: a 150-year-old Belgian chemicals group.
Tessenderlo Group agreed to pay $400 million for a 20% stake in FMC, according to a statement late Tuesday. The deal values FMC at $2 billion and pays $13.30 a share — an 18.75% premium over Tuesday’s close of $11.50 in New York. FMC shares climbed more than 7% in premarket trading Wednesday.
The transaction throws a lifeline to a company that’s lost more than 70% of its market value over the past year. It also cements a deeper tie to Brazil, FMC’s biggest market.
“Our investment in FMC perfectly aligns with the group’s strategy to expand our agriculture platform through landmark investments, where we take minority stakes in high-quality companies,” Tessenderlo CEO Luc Tack said in a statement.
Tessenderlo’s agriculture division — split between sulfur-based fertilizer maker Tessenderlo Kerley and organic fertilizer producer Violleau — punches above its weight for the group, contributing more than a third of revenue and over 40% of EBITDA. Those divisions brought in €935 million last year, up 13%. Group-wide, Tessenderlo posted €2.7 billion in revenue, a 4.4% gain from 2024.
For FMC, the timing couldn’t be better. The company just offloaded its India business for $252 million, and the Tessenderlo cash adds another cushion as it works to shore up its finances.
FMC plans to use the proceeds to pay down debt, with a target of retiring about $1 billion this year.
“Our board of directors is confident that this transaction represents the best path forward for the company and its shareholders,” said Pierre Brondeau, FMC’s chairman and CEO.
The equity sale is the latest in a string of moves to fix FMC’s balance sheet. The company has also renegotiated its revolving credit line, sold $1.2 billion in bonds, and signed a licensing deal with Corteva that included a $200 million upfront payment.
The deal is subject to regulatory approval in multiple jurisdictions.
Bank of America and Goldman Sachs advised FMC, with Davis Polk & Wardwell as legal counsel. Stibbe and Sullivan & Cromwell advised Tessenderlo.
