FMC Corporation (FMC) announced that it has created a world class platform to cater to the fast-growing biological crop protection market through two strategic deals.
FMC has formed an exclusive global strategic alliance with bioscience company Chr. Hansen, to develop and commercialize biological crop protection products. The company has also acquired the Center for Agricultural and Environmental Biosolutions (:CAEB).
Global Strategic Alliance
The global agriculture sector is facing a major productivity challenge, and biological solutions will become the more important way to address this challenge. Under the strategic alliance, Chr. Hansen will provide scouting, screening, scale up and fermentation manufacturing expertise while FMC will complement the services with scouting, screening, formulation capabilities, product development and registration experience, and global market access.
The alliance between the two companies creates a powerful platform and also enables them to participate in the multi-billion dollar biological crop protection market. The alliance accelerates Chr. Hansen’s entry in the plant protection market by combining its unique technology platform for bacterial solutions along with FMC’s strong route to market and application know-how. The companies will develop new products, knowledge and biological expertise and they remain confident of developing a strong portfolio of biological crop protection solutions.
FMC and Chr. Hansen have already been working on some projects and will collaboratively launch the Nemix C product for use in sugarcane in late 2013 in Brazil. Nemix C is a biological product and increases growth and yield through enhanced root development and protection.
Chr. Hansen develops natural ingredient solutions for the food, nutritional, pharmaceutical and agricultural industries. Both FMC and Chr. Hansen plan to expand into new markets with existing and new products.
Acquisition of CAEB
The acquisition of CAEB will provide FMC with a proprietary discovery and development platform through well equipped research facilities. CAEB, a unit of North Carolina-based RTI International, is a research effort with a comprehensive discovery platform focused on endophytic microbes and their plant-host interactions.
CAEB possesses extensive intellectual properties as well as proven capabilities of scouting and screening for new technologies and has the capability to add value to growers. It also has world-renowned team of researchers based in Research Triangle Park, North Carolina.
CAEB provides solutions that are environmental friendly, in order to help crop protection and increase farm yields. FMC, on the other hand, is aligned with the grower’s needs. The work conducted at CAEB facility will feed directly into FMC's strategic alliance with Chr. Hansen.
With these two transactions, FMC now have a powerful platform to launch a range of new products.
FMC currently retains a short-term Zacks Rank #2 (Buy).