Freshfields advises Croda International Plc on the sale of a majority of its Performance Technologies and Industrial Chemicals businesses
Freshfields is advising Croda International Plc (“Croda”), which uses smart science to create high performance ingredients and technologies that improve lives, in connection with the sale of the majority of its Performance Technologies and Industrial Chemicals businesses (“the divested business”) to Cargill Velocity Holdings Limited, a wholly owned subsidiary of Cargill Inc (“Cargill”) for €915m on a cash-free, debt-free basis.
The divestment delivers Croda’s transition into a focused Life Sciences and Consumer Care company.
Going forward, Croda will generate additional revenues from a new supply agreement, whereby Croda will supply certain ingredients from its retained manufacturing plants to Cargill. Similarly, Cargill will enter a supply agreement to provide Croda with certain ingredients from the divested business’ manufacturing plants.
Croda and Cargill are currently working together on the process to separate the two businesses, with completion of the transaction expected in Summer 2022. The transaction is subject to receiving customary regulatory approvals.
The Freshfields team is being led by partners Oliver Lazenby and Giles Pratt, counsel Holly Baker and senior associates Tom Dye and Jon Scurr working alongside Croda’s Group General Counsel and Company Secretary, Tom Brophy. Partners Alastair Chapman, Alice Greenwell, Dawn Heath and Peter Clements are leading on anti-trust, employment, pension and tax matters respectively.