FMC to Acquire Hydrocolloid Ingredients Business from International Specialty Products
Under the agreement, FMC will acquire ISP's alginates and food blends business (other than ISP's Germinal blending business based in Brazil), including ISP's Girvan, Scotland, manufacturing facility and employees associated with the business.
21/05/08 FMC Corporation has announced that the company has entered into an agreement to acquire the hydrocolloids ingredients business of International Specialty Products (ISP). The move will extend FMC's leadership in hydrocolloids and enhance service to global customers in food, pharmaceutical and specialty industries. ISP's hydrocolloid ingredients business had revenues of approximately $80 million in 2007.
“This acquisition is consistent with FMC’s overall hydrocolloids growth strategy. The complementary strengths in these businesses will improve FMC BioPolymer’s position as a reliable, global supplier of alginates and related food blends. Our extensive product and application knowledge, strengthened sales and technology team and a cost-efficient global network will allow us to better meet our customer’s evolving needs,” said Olga Drebotij Marketing Communications Manager at FMC.
The move, which will merge the Western World’s number 1 and 2 alginate producers will create the world’s largest alginate manufacturer, thereby overtaking Chinese and Japanese producers. Under the agreement, FMC will acquire ISP's alginates and food blends business (other than ISP's Germinal blending business based in Brazil), including ISP's Girvan, Scotland, manufacturing facility and employees associated with the business. The companies expect to close the transaction following satisfaction of customary closing conditions.
Alginates are extracted from seaweed and are one of the most versatile biopolymers used in a wide range of food, pharmaceutical and specialty applications. Food blends are comprised of specialty hydrocolloids that provide unique functionality in a variety of food uses. The newly acquired business will be integrated into FMC Specialty Chemicals Group's BioPolymer Division. “While the acquisition is a benefit for us, the advantages will translate directly to our customers – the combined business will be a stronger, more reliable global supplier with a diverse range of alginate-based products that will allow us to quickly respond to customer needs and provide more innovative solutions,” Drebotij added.
"The integrated business will enable FMC to offer customers a broader range of alginates and functional system blends and improve our geographic coverage in key markets." said Ted Butz, vice president and general manager, FMC Specialty Chemicals Group. "This move will further strengthen our global cost competitiveness by increasing our capabilities to source raw materials, drive production efficiencies and deliver improved supply chain economics."
FMC Corporation is a diversified chemical company serving agricultural, industrial and consumer markets globally for more than a century with innovative solutions, applications and quality products. The company employs approximately 5,000 people throughout the world. The company operates its businesses in three segments: Agricultural Products, Specialty Chemicals and Industrial Chemicals.
