DuPont announces binding offer for Danisco

Highlights

• DuPont will offer DKK 665 for each share of Danisco in cash, equivalent to a total transaction value of DKK 36.1 billion.
• This offer represents a 25% premium to Danisco’s closing share price on January 7, 2011, a 33% premium to last month’s average share price, and a 90% premium to the share price 12 months ago.
• The offer represents a multiple of 12.8x EBITDA based on the last twelve months.
• The transaction represents a strong strategic fit and creates new growth opportunities for both companies.
• Danisco will host an investor and press conference today at 12:00 CET at Langebrogade 1, Copenhagen.
• This conference will be available on webcast and can be followed on www.danisco.com.

Jørgen Tandrup, Danisco’s Chairman of the Board of Directors, comments: “We believe this offer represents attractive value for Danisco shareholders at a time when the share price is at an all-time high, and that it is in the best interest of the business and our employees. There will be substantial opportunities as part of a larger group and DuPont will bring significant advantages to Danisco’s strategy and further development. DuPont and Danisco make a powerful combination and will benefit from each others’ complementary strengths and skills.”

Tom Knutzen, Danisco’s CEO, comments: “Danisco has become a leader in food ingredients, bio-based solutions and industrial biotech. We are very proud of these achievements and are pleased that DuPont recognises the value of our businesses and our skilled employees. Danisco will make up an important part of DuPont, which is committed to develop new business and drive further growth. The transaction is about creating value and exploiting future potential. We look forward to working together to ensure the continued success and growth of our business.”

Background for the offer

DuPont is a market-driven science company, delivering innovative solutions to meet key global needs in food, safety and sustainability. Like DuPont, Danisco is a technology-driven organisation with exceptional scientific capabilities in enzymes and food ingredients. Together, the two organisations are expected to benefit from the power of industrial biotechnology over multiple product lines and industries, creating significant growth opportunities in biofuels, biomaterials, and other emerging technologies.

In addition, DuPont currently operates certain health and nutrition activities. In combination with the broad  and deep food ingredients portfolio of Danisco, the new organisation could develop a more comprehensive offering for the food industry, driving growth in each of the individual components. Given the strong research, innovation and applications development capabilities of DuPont and Danisco, the two are well suited to build their existing offerings and drive first-class innovation in a combined effort. Success in achieving this objective will benefit both entities and the people they employ.

If the offer is successful, an integration process will be undertaken utilising the knowledge and guidance of a joint DuPont and Danisco team to devise the optimum operating structure to leverage the complementary capabilities and efficiencies of the combined businesses.

Deutsche Bank is acting as exclusive financial advisor to Danisco.

Please refer to today’s other company announcements for further detail.

Yours faithfully
Jørgen Tandrup
Chairman, Board of Directors

For further information, please contact:
Investor Relations, tel.: +45 32 66 29 12, investor@(if you can see this please update your browser)danisco.com

For international media enquiries, please contact:
Finsbury (Andrew Dowler or Sally Hogan), tel.: +44 (0)20 7251 3801

Read the stock exchange notices on Danisco's website

Read the announcement from DuPont (external link)