FMC Corporation makes agreement to acquire BioPhero
FMC Corporation has announced an agreement to acquire BioPhero, a Denmark-based pheromone research and production company. This will add BioPhero’s pheromone-based insect control technology to FMC’s portfolio.
Pheromones can be used in an integrated pest management program to control the buildup of insect populations in a farmer’s fields by disrupting the insect mating process, decreasing the next generation of the target insect population. According to FMC, pheromones do not have an impact on the environment, promote biodiversity, and only target specific pests so as to not harm beneficial insects like pollinators.
BioPhero has created a yeast fermentation process for manufacturing pheromones at lower costs and with fewer production steps compared to traditional chemical synthesis methods, according to FMC. Lower costs will help expand availability of the pheromones from today’s focus on specialty fruit and vegetable producers to now include the large row crop market.
"This acquisition demonstrates our continuing commitment to invest in biologicals and adjacent technologies, expanding our world-class portfolio while advancing sustainable agriculture," says Mark Douglas, president and CEO of FMC. "BioPhero is a pioneer in the production of pheromones through a unique, highly efficient bioprocessing method — a game-changer in pheromone manufacturing technology.”
Dr. Kathleen Shelton, executive VP and chief technology officer for FMC, says FMC expects to launch five new pheromone products over the next three to five years, including products that go beyond insect control, such as fungi and weeds.
The purchase price of BioPhero of approximately $200 million will be paid at closing. Following regulatory approvals, the acquisition will be completed by the end of third quarter 2022. FMC expects pheromones and pheromone-based products to contribute approximately $1 billion in revenue at above company-average EBITDA margin by 2030.