Croda International - Acquisition of Solus Biotech
06/02/2023 07:00
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RNS Number : 9444O Croda International PLC 06 February 2023
6 February 2023
Croda International Plc
Acquisition of Solus Biotech expands fast growth Beauty Actives business in
Asia
Croda International Plc ('Croda') announces that it has agreed to acquire
Solus Biotech ('Solus'), a global leader in premium, biotechnology-derived
beauty actives, from Solus Advanced Materials for a total consideration of
KRW350bn (approximately £232m) on a debt-free, cash-free basis. The
acquisition provides access to Solus' existing biotech-derived ceramide and
phospholipid technologies, and its emerging capabilities in natural retinol.
This acquisition will significantly strengthen Croda's Beauty Actives
portfolio and increases its exposure to targeted prestige segments. Located in
South Korea, Solus expands Croda's Asian manufacturing capability and will
create a new biotechnology R&D hub in the region.
Solus is a leading supplier of naturally derived powder ceramides, a
high-growth global market with further potential to extend into formulated
ceramides. The number of new personal care products containing ceramides has
doubled over the last five years, principally for skin care but increasingly
for hair care formulations. Access to Croda's formulation capabilities will
accelerate development of Solus' formulated ceramides to create even greater
value for our customers globally and address exciting, formulated ceramide
demand.
Solus also brings a portfolio of phospholipids, spanning pharmaceutical
applications and beauty care. These naturally derived phospholipids are
produced at a GMP plant and can be used as delivery systems for pharmaceutical
actives and cosmetics. This will strengthen our Pharma presence in Asia and
enable collaborative R&D with Croda's Avanti business for the supply of
lipid systems for drug delivery. In addition, Solus is developing
biotech-derived retinol, which is an exciting, sustainable alternative to
synthetically derived retinol.
Solus' growth will be accelerated by Croda's ownership through access to our
technical and innovation capabilities, particularly in formulation, and by
accessing our global selling network. The acquisition will give Croda greater
ability to serve luxury beauty customers in Asia and globally, and the
opportunity to accelerate delivery of Avanti's pharma product pipeline.
Commenting, Steve Foots, Chief Executive of Croda, said:
"This is a strategic bullseye for Croda, consolidating our position as a
global leader in supplying sustainable, natural actives for personal care
across three critical technology platforms of peptides, ceramides and retinol.
It significantly enhances our sustainable biotechnology capabilities and adds
a North Asia manufacturing and innovation facility, providing a springboard to
premium markets in Asia and beyond. I am especially excited about their
brilliant technology, with Solus bringing rich IP and proprietary know-how
that we will be able to deliver to customers globally."
The acquisition is subject to regulatory approval.
Croda will report its financial results for 2022 on 28 February 2023.
About Solus Biotech
Solus Biotech has more than 30 years' experience in biotechnology and
fermentation. The business generated approximately KRW43bn (c.£28m) of
sales in 2022. It employs 95 people in South Korea at its R&D centre in
Bundag near Seoul and its production centre in Iksan.
Further information
For enquiries contact:
Investors: David Bishop, Croda +44 7823 874428
Press: Charlie Armitstead, Teneo +44 7703 330269
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