FMC Refocuses On Ag
FMC has signed a definitive agreement to sell its Global Specialty Solutions (GSS) business to Environmental Science US, LLC, known as Envu, for $350 million (subject to closing working capital adjustment.)
“Global Specialty Solutions is a profitable business with a strong history of growth. We believe this agreement with Envu will provide the attention and resources it needs to continue thriving,” said Pierre Brondeau, FMC chairman and CEO. “With this divestment, FMC can focus solely on its core business.”
GSS includes products for non-crop markets such as golf courses, professional sports stadiums and pest control. FMC announced plans to explore options for the GSS business in November 2023, deciding it no longer has a clear, strategic role in the company’s mid- or longer-term goals.
Envu is solely dedicated to the environmental science sector and sees GSS as an opportunity to support its growth strategy while continuing to deliver powerful innovations for customers in professional pest management, turf & ornamentals and more.
“As a focused company that is dedicated to delivering forward-thinking solutions for our customers, we are excited by the prospect of joining forces with the GSS business,” said Gilles Galliou, Envu CEO. “We see significant synergies and potential for accelerated innovation from the combination. In addition, as the successful outcome of a carveout transaction ourselves, we believe we are the ideal partner to help GSS through this transition and maximize our collective potential.”
The transaction is expected to close by the end of this year, subject to regulatory approval and other customary closing conditions. FMC intends to allocate all proceeds from the sale to debt reduction.
Purdue Ag Economics Professor Defines Focus As New Boehlje Chair
As the new Purdue University College of Agriculture department of agricultural economics’ Boehlje Chair in Managerial Economics for Agribusiness, Trey Malone intends to make purposeful connections with the campus community, agribusiness and agtech industries, and smaller farm operations.
These types of operations are familiar to Malone. “My family had a ranch in Laverne, Oklahoma, but it wasn’t profitable. I’m most excited to come up with creative ways to increase farm profitability for smaller operations, especially for producers in middle America,” he said.
Malone’s upbringing guided his interest in food systems and entrepreneurship, but Michael Boehlje inspired him to pursue agricultural economics. He first heard Boehlje, the now-retired distinguished professor of agricultural economics at Purdue, speak to a group of rural bankers nearly a decade ago.
“I was blown away at how Dr. Boehlje talked about finance strategy for world banks and the way he could break down global issues,” he said. “I remember leaving the conference thinking, ‘This is what I want to do.’”
Boehlje, who, with his wife, Rita, committed to funding the chair in 2022, now views Malone as a pioneer in the field.
“I am confident that Trey will make significant contributions in research, the classroom and outreach/engagement activities of the Center for Food and Agricultural Business and the Center for Commercial Agriculture. He works very hard to see that his research results are disseminated to the appropriate audiences,” Boehlje said.
Malone is honored by the chance to carry on Boehlje’s legacy.
“This position is humbling. It’s my dream job. Dr. Boehlje is hypertalented, and I have big shoes to fill,” he said.
Malone has contributed to over 60 research articles and been featured in news outlets such as The New York Times, CNN and Time magazine. His research focuses on entrepreneurship, public policy impacts on the agrifood supply chains and behavioral economics.
American Vanguard Announces CEO Departure, Establishes Executive Committee
As of July 12, Eric, G. Wintemute will no longer serve as American Vanguard Corporation’s CEO, but will remain as chairman of the board and provide consulting services to the company part time.
“In light of our recent performance, it is necessary to move more boldly and urgently to improve financial performance and transform the company. To that end, we are establishing an Office of CEO (OCEO) to be operated by:
• CFO David Johnson
• Senior Vice President of HR Shirin Khosravi
• CIO/general counsel Timothy Donnelly
• Board member, Mark Bassett
Scott Baskin, lead director of the board shares the OCEO will have two main areas of focus:
1. Significantly improving strategy execution by the company to drive improved earnings and cash flow for the remainder of the year.
2. Accelerating the company wide transformation, which will focus on better data systems, a simpler, more customer focused organization, improved market participation strategies, and more efficient operations.
“The OCEO includes decades-long experience in all areas needed to drive change for the better - cash and working capital management, human capital and organizational design, P&L management and transformation of business and digital platforms,” Baskin said.
As the company searches for a new CEO, Donnelly will serve as acting CEO for purposes of financial disclosures. All other functions of the company will report to the OCEO.
“The OCEO has been given full authority to expedite measures aimed at increasing profitability with the assistance of our global business consultant Kearney, and will report to the board on progress, direction and initiatives. We will update investors on these matters in greater detail during our next earnings call in early August,” Baskin said.
