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DuPont to buy Ralston unit
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August 22, 1997: 9:17 a.m. ET
Chemicals giant to pay $1.5 billion for soybean biotechnology firm
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NEW YORK (CNNfn) - DuPont said Friday it has signed a letter of intent to purchase a Ralston Purina soy products division in a stock deal worth $1.5 billion.
The Ralston unit, Protein Technologies International, develops soybean-based products used in a wide variety of applications, including processed meats, infant formula, and diet and sports drinks.
DuPont said the company was looking to increase its biotechnology holdings through the deal.
"This represents an important step in our life sciences strategy to create shareholder value by growing the global food, feed and industrial markets with higher value products derived through biotechnology," said DuPont CEO John A. Krol.
The companies are in negotiations to reach a definitive agreement, which they expect to sign this fall. DuPont said it would initiate a stock buyback program to reduce the number of shares (DD) it needs to issue in the deal.
DuPont is a global chemical, energy and life sciences company based in Wilmington, Del. Earlier this month, the company announced the formation of a $1.7 billion crop development venture with Pioneer Hi-Bred International. The operation will be known as Optimum Quality Grains.
Protein Technologies International is headquartered in St. Louis. It employs about 1,200 employees in 75 countries and has annual sales of $450 million.
-- Randy Schultz
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DuPont
Ralston Purina
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