Nufarm Limited (ASX:NUF) signed a definitive agreement to acquire European herbicide portfolio from FMC Corporation (NYSE: FMC) for $90 million on November 7, 2017. The consideration includes payment of $85 million in cash for portfolio and $5 million for existing product inventory. As a part of the transaction, no physical assets or personnel will be transferred apart from inventory. The transaction will be fully funded from existing debt facilities. Additionally, FMC has granted Nufarm a non-compete undertaking as well as non-exclusive rights to non-cereal uses. The companies have also agreed terms on transitional supply arrangements. The divestiture of portfolio will satisfy FMC's commitments to the European Commission related to its recent acquisition of a significant portion of DuPont's Crop Protection business. The transaction value represents a multiple of 7.5x EBITDA based on the expected earnings generated from the acquired portfolio in 2019. The close of the transaction is subject to European regulatory approval and customary closing conditions. Since the announcement of the transaction, it has been progressing through the required regulatory approvals. Nufarm expects to close the transaction in the next few months. The acquisition is expected to be single digit accretive to EPS pre amortization in the first full year of ownership.

Nufarm Limited (ASX:NUF) completed the acquisition of European herbicide portfolio from FMC Corporation (NYSE: FMC) on February 1, 2018.