Croda buy majority stake in Chinese chemicals firm
Snaith-headquartered chemical firm, Croda International, has received regulatory approval to buy a 65% stake in Chinese chemical manufacturers, Sichuan Sipo Chemical Co. Ltd.
The majority stake will be acquired from Sichuan Forever Holding Co. Ltd and individual shareholders for £38.2m.
Sipo employs around 300 people in the Sichuan province and produces speciality derivatives from natural raw materials.
The firm reported turnover of £28.0m and EBITDA of £3.1m last year.
This acquisition is intended to strengthen Croda’s credentials in the international fatty acid amides market, and products will be sold through Croda’s sales operation.
Steve Foots, chief executive of Croda, commented: “This is a significant step forward in our strategy to increase Croda’s presence in fast growing and emerging markets. Sipo’s manufacturing capabilities together with our marketing expertise and sales force infrastructure are an exciting combination.
“We will have a stronger platform in niche markets and renewable technologies which will allow us to develop our customer base and drive sales growth in Asia. Our broader footprint in China will also enable us to be more responsive to customer needs in this important region.”
This was posted in Bdaily's Members' News section by Tom Keighley .