Cargill has reached an agreement with Croda to acquire the majority of its performance technologies and industrial chemicals business for $1.03 billion on a cash-free, debt-free basis.
The investment will dramatically expand Cargill’s bioindustrial footprint to better serve industrial manufacturers searching for “greener” ingredient solutions, according to a news release.
The transaction, which is subject to regulatory approvals, is expected to close in the summer of 2022.
“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,” said Colleen May, president of Cargill’s bioindustrial business. “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.”
Under the agreement, Cargill will gain nearly 1,000 employees around the world and production facilities spread across Europe and Asia, along with a strong technology portfolio that supports leading market positions in automotive, polymer and food packaging applications. Aligning with Cargill’s commitment to sustainability, more than two-thirds of the raw materials used to manufacture these solutions are bio-based and renewable.
“Cargill is a company with a distinguished history and strong values,” said Steve Foots, chief executive of Croda. “Under its ownership, the divested business and our talented, hardworking employees can look forward to a bright future.”
The Croda acquisition will expand the company’s bioindustrial market presence, especially in Europe, the U.S. 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, including its QORE and NatureWorks joint ventures’ greenfields, as well as its acquisitions of Floratech and Arkema’s epoxides business.