DuPont To Acquire Danisco For $6.3 Billion

DuPont recently announced it had entered into a definitive agreement for the acquisition of
Danisco, a global enzyme and specialty food ingredients company, for $5.8 billion in cash and
assumption of $500 million of Danisco net debt.  Upon closing, this transaction would
establish DuPont as a clear leader in industrial biotechnology with science-intensive innovations
that address global challenges in food production and reduced fossil fuel consumption.

Danisco is a premier company, a long-time successful partner of DuPont and a proven innovator
committed to sustainable growth,” said DuPont Chair and CEO Ellen Kullman. “Danisco has attractive,
market-driven science businesses that offer clear synergies with DuPont Nutrition & Health and
Applied BioSciences. “This transaction is a perfect strategic fit with our growth opportunities and
will help us solve global challenges presented by dramatic population growth in the decades to
come, specifically related to food and energy.  In addition, biotechnology and specialty food
ingredients have the potential to change the landscape of industries, such as substituting
renewable materials for fossil fuel processes and addressing food needs in developing economies,
that will generate more sustainable solutions and create growth for the company,” Kullman said.

The acquisition is expected to be financed with about $3 billion in existing cash and the
remainder in debt.  The transaction is expected to close early in the second quarter. “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.  This also would create new opportunities across other
parts of the DuPont portfolio, including traditional materials science offerings,” Kullman said.

Danisco is a leading technology-driven organization, with outstanding research and
application development capabilities. The company has specialty food ingredients, including
enablers, cultures and sweeteners, that generate about 65% of total sales; and Genencor, its
enzymes division, represents 35% of total sales.  Danisco and DuPont are already joint venture
partners in the development of cellulosic ethanol technology.  Danisco has nearly 7,000
employees globally with operations in 23 countries.

Posted January 11, 2011

Source: DuPont