This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

FMC is Latest Chemicals Company to Split Up

Stocks in this article: FMC DOW BAC GS

NEW YORK (The Deal) -- Chemicals firm FMC (FMC) said Monday it intends to split into two public companies, separating its healthcare and agriculture units from its lithium and minerals segment.

Philadelphia-based FMC said the split follows a four-year effort to reshape its businesses. The company has done some buying and selling during that period, in 2013 alone acquiring the fish oil businesses of Norway's Trygg Pharma Group for $345 million while divesting its peroxygens business to the private equity firm One Equity Partners for $200 million.

Company chairman and CEO Pierre Brondeau called the split "a natural progression of our strategy," saying the two entities will both be stronger on their own.

"We believe that creating two companies, each with its own publicly listed equity, will enable the management of each company to pursue its own strategy," Brondeau said. "This will give each company greater focus on the success factors that are most important to its business and allow the adoption of a capital structure that is appropriate to its business profile."

Post-split Brondeau will lead the agriculture and healthcare business. The CEO of the minerals unit has not yet been named. The agriculture unit is expected to generate about $3.35 billion in annual sales, sourcing ingredients to food and pharmaceutical products, as well as crop protection products for farmers.

The minerals business should generate about $1 billion in annual sales, specializing on alkali chemicals including soda ash, used by the glass, chemical processing and detergent industries, as well as lithium, which is used in batteries and for medical applications. FMC said the minerals operation is expected to generate strong cash flow and should "have the financial flexibility to pursue select investment opportunities."

The split is part of a broader trend of chemical firms rethinking their businesses and trying to focus on less commodity-dependent products.

Dow Chemical (DOW), which last month rejected a suggestion by activist investor Dan Loeb that it split in two, has retained advisers to explore separation options for units totaling $5 billion in annual sales. Meanwhile DuPont last October said it would spin off its $7 billion in sales performance chemicals unit to shareholders.

Bank of America Merrill Lynch  (BAC) and Goldman Sachs (GS) are acting as financial advisers to FMC on the split, with Wachtell, Lipton, Rosen & Katz serving as legal counsel.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,356.87 +288.00 1.69%
S&P 500 2,012.89 +40.15 2.04%
NASDAQ 4,644.3120 +96.4780 2.12%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs