Acquisitive chemicals firm swoops for Plant Impact in multi-million-pound deal
Goole-based Croda Europe is to acquire research and development firm Plant Impact in a £10m deal.
Chemicals firm Croda Europe this morning announced it had made a cash offer for the entire issue of Harpenden based Plant Impact.
Croda Europe is a wholly-owned subsidiary of Croda, a £5.7 bn market capitalised FTSE100 company incorporated in 1925 which is a global producer and marketer of high performance ingredients and technologies in some of the world’s biggest and most successful consumer brands.
Today’s announcement brings Croda’s number of acquisitions and co-investments completed in the last 12 months to five. In January, Croda swooped for Nautilus Biosciences Canada and IonPhasE.
Steve Foots, Group chief executive of Croda, said: “I’m delighted to be announcing Croda Europe’s intention to purchase Plant Impact. This is high quality, novel technology that further expands our position in the crop care sector, and supports our strategy of investing in high growth markets and world leading technologies. Plant Impact has assembled a great team, and we’re really excited by the prospect of working with them to accelerate development of this business.”
David Jones, chairman of Plant Impact, added: “Following the announcement by Plant Impact on 13 December 2017 regarding the 2018 revenue shortfall and the severe challenge this poses to the Company, the Board has reviewed its strategic options in parallel with conducting a wide ranging formal sale process.
“The Board has concluded that the best interests of the shareholders are served by selling the Company now whilst it remains able to support its trading activities from its remaining cash reserves. Furthermore, the Board believes that Croda’s plan for Plant Impact and Croda’s current expertise and market position in agricultural chemistry is a firm basis for Plant Impact to fulfill the promise that we have consistently described for it and will therefore provide a more secure future for employees and other stakeholders in the Plant Impact Group.”
The Croda Group has a global network of over 4,200 employees across 36 countries. The firm said the acquisition of Plant Impact would extend its existing life sciences capabilities, adding an experienced commercial team and scientists and augmenting its range of intellectual property and products to its existing customer base.
AIM-listed Plant Impact researches and develops crop enhancement chemistry to improve crop yield and quality. The Plant Impact Group’s head office and research facility are at the Rothamsted Centre for Research and Enterprise in Harpenden, UK. It also has important regional commercial operations in Brazil, the USA, Argentina and West Africa. There are approximately 60 full time staff in the Plant Impact Group, with commercial sales in more than 14 countries.
Peel Hunt is acting as financial adviser to Plant Impact. DLA Piper is acting as legal adviser to Plant Impact.
GCA Altium is acting as financial adviser to Croda Europe. Ernst & Young (EY) is acting as legal adviser to Croda Europe.
The acquisition is expected to complete on 28 March 2018, subject to shareholder agreement.
