Key Takeaways
- FMC Corporation (NYSE: FMC) and Tessenderlo Group (XBRU: TESB) have entered a definitive agreement under which Tessenderlo will make a $400 million minority equity investment in FMC at $13.30 per share.
- Upon completion, Tessenderlo Group will own approximately 20% of FMC's outstanding common stock, making it a strategic cornerstone investor in the U.S. agricultural sciences company.
- The company intends to use the proceeds to pay down debt, reaching its approximately $1 billion debt paydown target, while continuing to operate as an independent company.
- The investment concludes FMC's board-level exploration of strategic options announced in February 2026, alongside a series of capital actions including a $1.2 billion secured high-yield bond offering and the sale of its India commercial business for $252 million.
- The company also signed a strategic supply and license agreement with Corteva, Inc., including a $200 million initial prepayment, and a $114 million sale-and-leaseback of its Newark, Delaware property.
FMC Corporation and Tessenderlo Group Agree to $400M Minority Stake
FMC Corporation (NYSE: FMC), a global agricultural sciences company, and Tessenderlo Group (XBRU: TESB), a Belgian industrial group, have entered a definitive agreement under which Tessenderlo will make a strategic minority equity investment of approximately $400 million in FMC at a price of $13.30 per share. Upon closing, Tessenderlo Group will hold approximately 20% of FMC's outstanding common stock.
The transaction marks the conclusion of the FMC Board of Directors' formal exploration of strategic options, which was announced in February 2026. Closing is subject to customary conditions including receipt of regulatory approvals.
Capital and Debt Strategy
FMC intends to apply the proceeds toward debt reduction, bringing the company to its approximately $1 billion debt paydown target. The Tessenderlo investment is one of several capital actions the company has taken in recent months to improve financial flexibility and sharpen strategic focus. These include amending its Revolving Credit Facility for covenant relief, raising $1.2 billion through a secured high-yield bond offering, signing an agreement to sell its India commercial business for $252 million, entering a strategic supply and license agreement with Corteva, Inc. that includes a $200 million initial prepayment, and signing a $114 million sale-and-leaseback of its Newark, Delaware property.
With these steps in place, FMC says it is positioned to execute on its operational and strategic plan as an independent company, including advancing its R&D pipeline and accelerating the commercialization of new agricultural molecules.
What Tessenderlo and FMC Leadership Say About the Deal
“Our investment in FMC perfectly aligns with Tessenderlo Group's strategy to expand our agro platform through strategic cornerstone investments whereby we take a minority position in high-quality companies. FMC offers an attractive opportunity to invest in a business with meaningful long-term potential driven by a new generation of proprietary molecules that are renewing its portfolio and strengthening its competitive position,” said Luc Tack, Chief Executive Officer of Tessenderlo Group.
“This agreement follows a comprehensive and deliberate process, and our Board is confident that entering into this agreement is the best path forward for our company and its shareholders. We believe the strategic and operational actions taken by FMC over the last several months, combined with our significantly improved leverage and liquidity position, will deliver value to our shareholders, putting FMC on a path to growth as we strongly serve our customers and markets,” said Pierre Brondeau, Chairman, CEO and President of FMC Corporation.
Advisers on the Transaction
BofA Securities and Goldman Sachs & Co. LLC are serving as financial advisers to FMC, with Davis Polk & Wardwell LLP acting as legal counsel. Stibbe BV/SRL and Sullivan & Cromwell LLP are serving as legal advisers to Tessenderlo Group.
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