Web Date: May 19, 2011
Two Firms Complete Delayed Deals
After four months of delays, DuPont has completed its $6.6 billion purchase of enzymes and food ingredients maker Danisco. Separately, and after five months, Thermo Fisher Scientific has completed the $2.1 billion purchase of Dionex, a manufacturer of liquid and ion chromatography scientific instruments.
In DuPont's case, first regulatory approvals and then shareholder resistance to the original offering price of $6.3 billion delayed completion of the Danisco deal. Despite backing from the Danish firm's management and two offer extensions, only 48% of Danisco shareholders had tendered their shares by late April (C&EN, May 2, Latest News).
Faced with these results, on April 29 DuPont made its "best and final offer" of $6.6 billion, a 5% premium over the original offer. In addition, the firm lowered the number of Danisco shares it required to complete the deal from 90% to 80%. The increased offer did the trick: By May 13, more than 92% of shareholders had accepted the deal.
"We are delighted that the tender has been successful and we can move on to the process of integrating Danisco into DuPont," says DuPont CEO Ellen Kullman. She earlier warned that DuPont would "explore other paths" if Danisco passed up her offer.
For Thermo Fisher, the sticking point was gaining regulatory approvals for the deal. After finally completing the deal on May 13, Thermo Fisher CEO Marc N. Casper declared that the combination "will expand our presence in attractive applied markets, including environmental analysis, water testing and food safety, and increase our commercial capabilities in China and other growing Asia-Pacific regions."
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