Croda announced that it has signed an agreement to sell the majority of its Performance Technologies and Industrial Chemicals (PTIC) businesses to Cargill for an enterprise value of $1.03 billion (€915 million).
WHO: Cargill combines 155 years of experience with new technologies and insights to serve as a trusted partner for food, agriculture, financial, and industrial customers in more than 125 countries. Their 155,000 employees across 70 countries work relentlessly to nourish the world in a safe, responsible, and sustainable way.
Croda is the largest cosmetic-ingredients maker in Europe. Founded in 1925 by an entrepreneur and a chemist, Croda International plc is a holding company based in Snaith, England, that manufactures a diverse range of chemicals and chemical products for the personal care, pharmaceutical, plastics, food processing, nutrition, fire prevention, engineering, and automotive industries.
WHY: The transaction follows Croda's comprehensive strategic review of the unit to determine the best ownership structure to ensure the business's future success. Croda intends to reinvest proceeds from the transaction into faster-growth areas, increasing its exposure to health care, and further developing its position as a sustainability leader in consumer care and crop care markets. The divestment delivers Croda's transition into a focused Life Sciences and Consumer Care company with these two sectors accounting for well over 90% of the Group's 2020 adjusted operating profit following completion.
For Cargill the Croda acquisition would greatly expand the company's bioindustrial market presence, especially in Europe, the US, and Asia, all high-growth markets for bio-based solutions. This acquisition builds on other recent moves by Cargill to expand its presence in the bioindustrial space
IN THEIR OWN WORDS: Steve Foots, Chief Executive of Croda, said: "Today's announcement completes our transition into a pure-play consumer and life sciences company. We will focus our capital and resources on delivering sustainable solutions and scaling our consumer, health and crop care technologies, leading to consistent sales growth and an even stronger profit margin.”
Cargill is a company with a distinguished history and strong values. Under its ownership, the divested business and our talented, hardworking employees can look forward to a bright future.”
Colleen May, President of Cargill's Bioindustrial business, said: "The bioindustrial space is a priority for Cargill, as we strive to support our customers with innovative, nature-based solutions that deliver real-world benefits. Combining our diverse, global supply chain and deep operational expertise with Croda's extensive industrial business capabilities and broad bio-based portfolio will spark a new wave of innovation and create tremendous value for our customers."
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