Croda’s £109m deal will “help in feeding the world’s growing population”
CHEMICALS giant Croda International has bought Dutch crop care company Incotec Group for €155m (£109m) in a deal it says will “help in feeding the world’s growing population”.
The East Yorkshire-based group believes the expertise within Incotec, combined with Croda’s enlarged and enriched research and technical capabilities and a dedicated global sales force, will create “a broader, more innovative portfolio of products”. It expects that to result in improving farming yields, feeding the world’s growing population.
The FTSE-250 company, which is valued at £3.7bn, has identified seed enhancement as a big opportunity for its own crop care business that will be boosted by the purchase of Incotec, which it describes as “an independent world leader of innovative seed enhancement”.
Steve Foots, chief executive of Croda, said: “Incotec is a rare asset in a niche, high value, fast growing sector of the global crop market. With an experienced research and development led management team, Incotec brings differentiated market leading technologies, world class innovation and strong customer relationships.
“The combination with our own Crop Care business creates a strong and unique platform for future growth. We believe that our combined innovation strengths, together with our global sales reach, will enable us to be far more responsive in meeting the unmet needs of our customers today and tomorrow.”
Incotec generated revenues of €71m (£50m) in the year to September from its proprietary and sustainable technologies for both vegetable seeds and field crops. It will retain its independent identity and brand once the acquisition completes, which is expected to happen on Friday.
