Belgian group to invest $400 million in FMC
Shares of FMC Corporation (NYSE:FMC) climbed more than 8% in pre-market trading on Wednesday after the agricultural sciences company announced that Tessenderlo Group (XBRU:TESB) will acquire a 20% equity stake in a transaction valued at approximately $400 million.
Under the definitive agreement, Tessenderlo will purchase FMC shares at $13.30 each, giving the Belgian industrial group ownership of roughly one-fifth of the company’s outstanding common stock.
Investment supports debt reduction strategy
FMC said the proceeds from the investment will allow it to achieve its target of reducing debt by approximately $1 billion.
The agreement also brings to a close the strategic review process launched by the company in February 2026, with management reaffirming its commitment to remaining an independent business.
“This agreement follows a comprehensive and deliberate process, and our Board is confident that entering into this agreement is the best path forward for our company and its shareholders,” said Pierre Brondeau, chairman, chief executive officer and president of FMC.
Tessenderlo expands agricultural portfolio
Luc Tack, chief executive officer of Tessenderlo Group, said the investment supports the company’s strategy of expanding its agricultural platform through minority stakes in high-quality businesses.
The transaction strengthens Tessenderlo’s presence in the global crop protection sector while providing FMC with additional financial flexibility.
FMC has undertaken broad balance sheet initiatives
The investment follows a series of financing and portfolio actions completed by FMC in recent months.
These include amendments to its revolving credit facility, a $1.2 billion secured high-yield bond offering, and an agreement to sell its commercial business in India for $252 million.
The company also signed a strategic supply and licensing agreement with Corteva, Inc., including a $200 million upfront payment, and entered into a framework agreement for the $114 million sale and leaseback of its Newark, Delaware property.
Deal remains subject to approvals
Completion of the transaction remains subject to customary closing conditions, including regulatory approvals.
BofA Securities and Goldman Sachs are acting as financial advisers to FMC on the transaction.