DowDuPont completes purchase of FMC seaweed processing plant in Rockland

[USA] FMC Corp.’s Rockland seaweed processing plant, which is the city’s largest taxpayer and employer, is part of a sale of FMC’s
Health and Nutrition business to DowDuPont that closed on Oct. 26.DowDuPont now owns the FMC Corp.’s waterfront carrageenan plant that is Rockland’s largest taxpayer.

Village Soup reported that the sale of FMC’s plant to DuPont Nutrition USA Inc. was signed Oct. 26, with the corresponding paperwork being filed in the Knox County Registry of Deeds on Nov. 1.Dan Turner of DowDuPont’s corporate media relations told Village Soup that the Rockland plant will continue to operate “as business as usual” and that there are no immediate changes planned there.

As of last year, the FMC plant in Rockland employed 107 people, Village Soup reported. The city’s valuation for the carrageenan manufacturer’s property $21 million, resulting in $467,000 being paid in property taxes during the past year.

DowDuPont (NYSE:DWDP) stated in a Nov. 1 news release that it had completed its acquisition of FMC Corp.’s Health & Nutrition business, except for the Omega-3 business, and its divestment to FMC of a portion of DuPont’s Crop Protection business.

“The transaction includes consideration to DuPont of $1.6 billion to reflect the difference in the value of the assets, including cash of $1.2 billion and working capital of $425 million,” DowDuPont reported, adding that the divestiture satisfies commitments made in connection with regulatory clearance of the merger with Dow, which was completed on Aug. 31, 2017.

FMC’s health and nutrition division is being integrated into DowDuPont’s nutrition and health division, according to DowDuPont’s news release.

“FMC’s complementary portfolio and expertise will enhance DowDuPont N&H’s growth potential with a broader offering of products and solutions, an expanded footprint, a strong R&D pipeline and access to different and complementary routes to market,” the release stated.

Carrageenan is a common food additive extracted from red seaweed that is used for its gelling, thickening and stabilizing properties.

When DowDuPont’s planned acquisition was announced last spring, the company said the acquisition of FMC’s Health and Nutrition business was part of an agreement to divest a portion of its crop protection business in order to gain approval of its proposed merger with The Dow Chemical Co. from the European Union.

 

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