Last checked at 1 Jul 2022 07:00
Stock market announcement
1 July 2022
Completed divestment - transitioning to a pure-play Consumer Care and Life Sciences company
Croda International Plc ('Croda'), which uses smart science to create high performance ingredients and technologies that improve lives, today announces the completion of the divestment of the majority of its Performance Technologies and Industrial Chemicals businesses to a wholly owned subsidiary of Cargill Inc ('Cargill'), as more fully described in Croda's initial announcement on 22 December 2021.
The gross proceeds will be approximately €775m (approximately £667m), subject to small, customary adjustments for cash and debt-like instruments, and working capital, in line with the earlier announcement. The divestment and the associated proceeds exclude Croda Sipo ('Sipo'), a Chinese joint venture in which Croda has a 65% shareholding. Croda continues to discuss with its joint venture partner the acquisition of its stake in Sipo, to enable a subsequent sale by Croda to Cargill of 100% of Sipo for €140m.
Steve Foots, Chief Executive of Croda, said: "This divestment accelerates Croda's transition to being a pure-play Consumer Care and Life Sciences company. We will redeploy capital and resources to scale our consumer, health and crop care technologies, helping to deliver consistent, superior sales growth and even stronger profit margins."
Further information
For enquiries contact:
Investors: David Bishop, Croda +44 7823 874428
Press: Charlie Armitstead, Teneo +44 7703 330269
Advisers to Croda
Morgan Stanley & Co. International Plc (Financial Adviser & Corporate Broker)
Shirav Patel, Andrew Foster
Centerview Partners (Financial Adviser)
James Hartop
Freshfields Bruckhaus Deringer (Legal Adviser)
Oliver Lazenby
Teneo (Financial PR)
Charlie Armitstead
Disclaimers
Morgan Stanley & Co. International plc ("Morgan Stanley") which is authorised by the Prudential Regulation Authority ("PRA") and regulated by the Financial Conduct Authority and the PRA in the UK is acting exclusively as financial adviser and corporate broker to Croda and no one else in connection with the matters set out in this announcement. In connection with such matters, Morgan Stanley, its affiliates and their respective directors, officers, employees and agents will not regard any other person as their client, nor will they be responsible to any other person for providing the protections afforded to their clients or for providing advice in relation to the contents of this announcement or any other matter referred to herein.
Centerview Partners UK LLP ("Centerview Partners") is authorised and regulated by the Financial Conduct Authority. Centerview Partners is acting exclusively for Croda and no one else in connection with the matters referred to in this announcement. Centerview Partners is not and will not be responsible to anyone other than Croda for providing the protections afforded to its clients or for providing advice in connection with the contents of this announcement or any other matter referred to in this announcement. Neither Centerview Partners, nor any of its affiliates, owes or accepts any duty, liability or responsibility whatsoever to any person who is not a client of Centerview Partners in connection with this announcement, any statement contained herein or otherwise.