Dow, Eli Lilly To Form Agricultural Products Company
Apr. 18, 1989
MIDLAND, Mich. (AP) _ Dow Chemical Co. and Eli Lilly & Co. will combine their plant science businesses to form an agricultural company in Indianapolis, the companies said Tuesday.
The companies hope to begin construction in 1989 on an Indianapolis marketing and research facility for Dow Elanco Inc., Dow Chemical spokeswoman Sarah Opperman said.
Dow Elanco Inc. would be one of the largest research-based agricultural companies in the world, with projected sales of about $1.5 billion in its first year of operation, the companies said.
About 200 jobs would be moved from Dow Chemical's Dow Agricultural Products facilities in Midland to Indianapolis over a three-year period, Opperman said.
Current employees of Dow Agricultural Products and Eli Lilly's Elanco Products Co. would be incorporated into the new company, Opperman said.
She said the companies haven't projected what additional jobs might be involved, but the new venture will employ about 2,800 including field personnel.
The venture would be formed by consolidating Dow Chemical's plant science business, Dow Agricultural Products, and Dow's industrial pest control business with Eli Lilly's plant science business, Elanco Products Co.
Eli Lilly will retain Elanco's animal health business.
Opperman said Dow Chemical and Eli Lilly have signed a letter of understanding and hope to reach an interim agreement this summer on the cashless transaction that would form the new company.
Dow will receive 60 percent of the new venture's earnings and Eli Lilly 40 percent, she said.