Croda acquires South Korean biomaterials firm

Chemicals company Croda has agreed to acquire biomaterials firm Solus Biotech for KRW 350.0bn (£232.0m) one a cash and debt-free basis.

Croda said on Monday that the acquisition provides it with access to Solus' existing biotech-derived ceramide and phospholipid technologies, and will "significantly strengthen" its beauty actives portfolio and increase its exposure to targeted "prestige segments".

Located in South Korea, Croda also stated Solus would expand Croda's manufacturing capability, with the group also planning to create a new biotechnology R&D hub in the region.

Chief executive Steve Foots said: "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.

"It significantly enhances our sustainable biotechnology capabilities and adds a North Asia manufacturing and innovation facility, 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."

Reporting by Iain Gilbert at Sharecast.com