FMC Plans To Split Into Two Independent Publicly Listed Companies

(RTTNews) - Diversified chemicals maker FMC Corp. (FMC) said Monday that it plans to split the company into two independent publicly listed companies, New FMC and FMC Minerals. The split is expected to be completed in early 2015, with both the companies to be listed on the New York Stock Exchange.

"FMC has proactively managed its portfolio during the last four years as part of Vision 2015, including a realignment of our reporting segments early last year. Our decision to separate into two independent companies is a natural progression of our strategy. We believe that creating two companies, each with its own publicly-listed equity, will enable the management of each company to pursue its own strategy," President, Chairman and CEO Pierre Brondeau said.

The Philadelphia, Pennsylvania-based company noted that the New FMC will comprise of its agricultural solutions as well as health and nutrition segments, while FMC Minerals will comprise of its current minerals segment, which includes the Alkali Chemicals and Lithium businesses. The split is expected to be in the form of a tax-free distribution of shares to existing FMC shareholders.

"This will give each company greater focus on the success factors that are most important to its business and allow the adoption of a capital structure that is appropriate to its business profile," Brondeau added.

The New FMC would be led by Brondeau, and Paul Graves would be the executive vice president and CFO. Meanwhile, President of Agricultural Solutions Mark Douglas, and Vice President and Global Business Director of Health and Nutrition Mike Smith, would both continue in their current roles.

FMC added that it will hunt for a new CEO to lead FMC Minerals over the next few months, while current Vice President of Strategic Development Andrew Sandifer would be CFO of FMC Minerals and Ed Flynn would be chief operations officer for FMC Minerals.

Meanwhile, Tom Schneberger and Eric Norris will continue in their current executive leadership roles for Alkali Chemicals and Lithium, respectively.

The company noted that New FMC is expected to generate earnings of about $815 million, and revenues of about $3.35 billion in fiscal 2014. Meanwhile, FMC Minerals is expected to generate earnings of about $153 million and revenues of about $1.0 billion.

FMC closed Friday's regular trading session at $77.87, down $0.45 on a volume of 0.97 million shares. In the past 52-week period, the stock has been trading in a range of $55.18 to $78.57.