Updated from Sunday, Jan. 9

NEW YORK ( TheStreet) -- DuPont ( DD) agreed to buy Danisco, the Danish food ingredients company, for $5.8 billion in cash and the assumption of $500 million of Danisco debt.

In a press release last Sunday, DuPont said the acquisition will be financed with about $3 billion in existing cash and the remainder in debt. The acquisition is expected to close early in the second quarter and be cash and earnings accretive in 2012, the first full year of the combined entity.

DuPont said the acquisition would reduce its 2011 earnings outlook of $3.30 to $3.60 a share by 30 cents to 45 cents.

"Danisco has two well-positioned global businesses that strongly complement our current biotechnology capabilities, R&D pipeline, and specialty food ingredients, a combination that offers attractive long-term financial returns," said Ellen Kullman, chairman and CEO of DuPont. "This also would create new opportunities across other parts of the DuPont portfolio, including traditional materials science offerings."

Shares of DuPont closed Friday at $49.76.

-- Written by Joseph Woelfel

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