PHILADELPHIA -- FMC Corporation plans to separate into two independent public companies, "New FMC," which will be composed of FMC's Agricultural Solutions and Health and Nutrition segments and "FMC Minerals," which will be composed of FMC's current Minerals segment. The company expects the separation, which remains subject to final board approval and other customary conditions, will take the form of a tax-free distribution of shares to existing FMC shareholders. FMC Corporation expects to complete the separation in early 2015, and each company is expected to be listed on the New York Stock Exchange.
Pierre Brondeau, FMC Corporation president, CEO and chairman, said: "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. 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."
New FMC will be led by Pierre Brondeau, president, CEO and chairman, and Paul Graves will be the executive vice president and CFO. Mark Douglas, president of Agricultural Solutions, and Mike Smith, vice president and global business director of Health and Nutrition, will continue in their current roles.
FMC Minerals' leadership team will be led by a new CEO who will be announced in the coming months. Andrew Sandifer, FMC Corporation's current vice president of Strategic Development, will join the FMC Minerals executive leadership team as CFO. Ed Flynn will be chief operations officer for FMC Minerals. Tom Schneberger and Eric Norris will continue in their current executive leadership roles for Alkali Chemicals and Lithium, respectively.
New FMC, composed of FMC Agricultural Solutions and FMC Health and Nutrition segments, will be a technology-based and customer-driven company with deep application expertise. Based on the midpoint of the company's February 2014 outlook, combined revenue and earnings for the Agricultural Solutions and Health and Nutrition segments are expected to be approximately $3.35 billion, up 16 percent over 2013, and $815 million, up 15 percent over 2013, respectively.
FMC Agricultural Solutions is a science-based business, serving growers worldwide. Growers look to FMC Agricultural Solutions for crop-protection products developed from science-based innovation, field development, applications expertise and toxicology that, on a crop-by-crop, region-by-region basis, enhance quality and yield.
FMC Health and Nutrition develops products from natural sources that provide texture, stability and natural color solutions for food applications, while also producing binders, coatings and high-purity, high-concentration omega-3 for pharmaceutical and nutraceutical applications.
FMC Minerals will be composed of the current FMC Minerals segment, which includes the Alkali Chemicals and Lithium businesses. Based on the midpoint of the company's February 2014 outlook, revenue and earnings for the FMC Minerals segment are expected to be approximately $1.0 billion, up 7 percent over 2013, and $153 million, up 19 percent over 2013, respectively.