DuPont acquiring Danisco, corporate parent of Genencor

DuPont has agreed to buy Copenhagen-based Danisco, corporate parent of Genencor, which has a plant in southwest Cedar Rapids, for $5.8 billion.

Wilmington, Dela.-based DuPont also owns , Pioneer Hi-Bred International of Johnston, which it acquired in 1999 f0r $7.7 billion. With the purchase of Danisco, DuPont will become the owner of the largest food- ingredients maker, producing sweeteners and cultures used in ice cream and cheese, and the world's second-largest biofuels business.

Danisco and DuPont already share an ethanol- producing venture. The deal, which DuPont will finance with $3 billion in cash and remainder with debt, must be approved by Danisco shareholders.

Danisco would be the largest acquisition by DuPont since the purchase of genetically modified seed-maker Pioneer. The Danish company's earnings rose 59 percent to $53.5 million in the three months that ended Oct. 31, beating analysts' estimates, after earnings jumped at its Genencor unit.

Genencor makes enzymes for biofuels and household detergents and accounted for 34 percent of the company's sales in the quarter. Danisco had $2.6 billion of sales in fiscal 2010.

Danisco and Genencor last month announced plans for a $27.7 million research pilot plant adjacent to its  manufacturing facility at 1000 41st Avenue Dr. SW to produce BioIsoprene, a key rubber ingredient made from renewable sources such as corn or switchgrass.