Croda International, A Chemicals Company Finalises To Purchase a South Korean Firm for KRW 350B

Croda International, a listed speciality chemicals company, has agreed to buy a company based in South Korea for approximately £232 million.

The Goole-based company is set to acquire Solus Biotech, a manufacturer of biotechnology-derived beauty actives, from Solus Advanced Materials for a total consideration of KRW350 billion (approximately £232 million) in cash and debt.

Croda will gain access to Solus' existing biotech-derived ceramide and phospholipid technologies, as well as its emerging natural retinol capabilities, as a result of the acquisition. Croda's Beauty Actives portfolio is expected to be strengthened, as is its exposure to targeted prestige segments.

Solus will also expand Croda's Asian manufacturing capabilities and establish a new biotechnology R&D centre in South Korea.

Solus generated approximately KRW43 billion (approximately £28 million) in sales in 2022. In South Korea, it employs 95 people at its R&D centre in Bundag, near Seoul, and its production centre in Iksan.

"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," said Steve Foots, CEO of Croda. It expands our sustainable biotechnology capabilities and adds a manufacturing and innovation facility in North Asia, 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."