THE WHAT? Croda has announced that it has signed an agreement to sell the majority of its Performance Technologies and Industrial Chemicals businesses to Cargill for an enterprise value of €915 million.
THE DETAILS The deal covers five manufacturing facilities, as well as additional lab facilities. Croda will keep those parts of the PITC unit that support its Consumer Care and Life Sciences sectors, and the retained activities will become the Industrial Specialties division.
THE WHY? The transaction follows a comprehensive strategic review of the unit, announced in May last year, and will see Croda transition to a dedicated Consumer Care and Life Sciences company.
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.”