Chemicals firm swoops for Scandinavian business in multi-million pound deal
Goole-headquartered Croda International, which produces and sells speciality chemicals, has announced that it is to buy a Denmark-based company which supplies human and veterinary markets for €72m (£64m).
The listed firm has signed a definitive agreement with Brenntag Nordic to acquire Brenntag Biosector and the transaction is expected to close by the end of 2018.
Biosector is a specialist in the manufacture and supply of adjuvants serving the human and veterinary vaccine market.
Biosector was founded in 1939 and operates from a manufacturing facility in Frederikssund, Denmark. Its product portfolio comprises innovative aluminium and saponin-based adjuvants. Aluminium-based adjuvants are extensively used in human and veterinary vaccines to increase their effectiveness.
Vaccine adjuvants are a natural extension to Croda’s market leading delivery systems in its Health Care business. Croda said that these adjuvants represented a niche, high-growth market, driven by increased healthcare spending alongside advances in biotechnology and the growing need for preventative treatments.
On completion, Biosector will be integrated into Croda’s Health Care business within the Life Sciences sector. It will continue to be led by its team. Croda will leverage its formulation and purification expertise to accelerate the development of Biosector’s rich pipeline of next generation adjuvant systems. Croda will also utilise its dedicated global sales network to deliver Biosector’s growth potential.
Steve Foots, Chief Executive of Croda, said: “Biosector is a rare asset, in a high value, fast growing sector of the global pharmaceutical market. With an experienced high-quality team, Biosector brings world-class protected technologies and industry-leading manufacturing facilities.
“Furthermore, the strong cultural alignment between Biosector and Croda enhances our highly technical-based sales approach and emphasis on value over volume. The opportunity to quickly build upon Biosector’s impressive track record to date is enormously exciting and we look forward to welcoming the team to Croda.”
The announcement comes just weeks after Croda released details of its planned £7m new state-of-the-art warehouse in Goole.
The site will become the listed firm’s worldwide distribution hub for products made at their three northern UK manufacturing sites and for the European delivery of products made across its global network.
The 12.3 hectare site, part of the Goole 36 development, will enable Croda to operate a much larger distribution facility to service its growing global business.
