Cargill set to acquire a majority of Croda’s performance technologies and industrial chemicals business

Global agribusiness giant Cargill has agreed to acquire the majority of speciality chemical company Croda’s performance technologies and industrial chemicals business for US$1.03bn.

Cargill said on 22 December that the Croda acquisition would expand the company’s bio-industrial presence, particularly in Asia, Europe and the USA.

The transaction, which is subject to regulatory approvals, is expected to close this summer.

“The bio-industrial space is a priority for Cargill, as we strive to support our customers with innovative, nature-based solutions that deliver real-world benefits,” Colleen May, president of Cargill’s Bio-industrial business said.

“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 said it would gain production facilities across Europe and Asia, along with a technology portfolio in the automotive, polymer and food packaging sectors.

In line with Cargill’s commitment to sustainability, the company said that more than two-thirds of the raw materials used to manufacture these solutions would be bio-based and renewable.

The acquisition followed other recent moves by Cargill to expand its presence in the bio-industrial sector, including its acquisition of Floratech, a leading provider of natural emollients and derivatives for beauty and personal care applications, and Arkema’s epoxides business.

According to its website, Croda produces and sells speciality chemicals for a range of sectors including consumer care, life sciences and performance technologies.