DuPont To Save Millions Through Acquisition

Dupont and Danisco turn this into Fuel

In a statement from DuPont, it appears that the chemical giant will be acquiring one of its current partners in a move that will reportedly save the company an estimated $130 million annually. For years now, DuPont has been collaborating with Danisco, a Danish company specializing in the production of enzymes used to make biofuels and other biomaterials.

The acquisition will allow the two companies to continue their work together while saving money on reduced operational overhead. This will be the largest purchase by DuPont in over a decade. The Wilmington, DE based company will reported use about $3 billion in cash plus additional debt financing to complete the purchase for a total of $5.8 billion.

In addition to the previous joint projects between the two companies, Danisco also brings a nice record of sales to help strengthen DuPonts bottom line. The enzyme market has been one of steady growth in a lot of areas including detergents and animal feed.

In 2009 the two companies opened a plant in Vonore, TN to demonstrate the feasibility of developing ethanol from corn cobs, usually discarded waste, and switchgrass. Considered a success, the companies previously announced plans to expand to additional facilities and ramp up production to commercially viable levels.