Croda to buy US-based Avanti for up to $260m

Chemicals company Croda International has agreed to buy Avanti, a company specialising in the development and production of high-purity polar lipids used in next-generation drug delivery technology and vaccines, for as much as $260m.

There will be an initial consideration of $185m on a debt and cash-free basis, with an additional earnout of up to $75m based on near-term commercial opportunities using Avanti's lipid-based solutions.

Founded in 1967, Avanti is a technology-rich business that operates globally from one site in Alabama in the US. Of its 150 employees, more than 100 are in scientific roles and 29 have PhD qualifications.

Avanti creates and makes high-purity polar lipids that are increasingly being used as delivery systems for complex therapeutic drugs and in next-generation mRNA vaccines. These lipid technologies ensure the targeted, controlled and extended release of active pharmaceutical ingredients (APIs), increasing their efficacy and safety. The business provides its products and services to pharmaceutical companies and thousands of biotechnology companies and academic research organisations.

Croda said Avanti's know-how and technology are highly complementary to its own capabilities in drug delivery systems, vaccine adjuvants and immunotherapy. The acquisition will more than double Croda's research and development capability in drug delivery.

Chief executive officer Steve Foots said: "With their exciting drug delivery technologies, Avanti is a market leader in a high growth niche of the health care market, serving over 3,000 customers globally.

"Bringing Avanti's best-in-class expertise into Croda also significantly enhances our presence across the pharma product lifecycle, including early stage R&D, clinical trials, analysis and formulation. I am confident that Avanti will prove transformative to the capabilities and performance of our Life Sciences sector."