(Bloomberg) -- Agribusiness Cargill Inc. will buy the majority of specialty chemicals-maker Croda International Plc's performance technologies and industrial chemicals unit for an enterprise value of $1.03 billion.
The deal is on a cash- and debt-free basis and part of a push to expand in the market for “greener” ingredient solutions, Cargill said on Wednesday. The U.S. commodity powerhouse will gain production facilities in Europe and Asia and a technology portfolio that includes automotive, polymer and food-packaging applications.
The move comes during booming times for agricultural traders, with Cargill recently capping its most profitable fiscal year in its century-long history. This year, it also announced plans to buy major U.S. chicken producer Sanderson Farms Inc. with Continental Grain Co. for $4.5 billion.
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“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,” Colleen May, president of Cargill's bioindustrial business, said in a statement.
The business includes five manufacturing plants, including in the Netherlands, Britain and China. U.K.-based Croda, which started a strategic review of the business in May, said the sale completes its move into a “pure-play consumer and life sciences company.”
Croda's shares fell 0.7% in London as of 9 a.m. local time.
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