Cargill Takes Croda’s PTIC Business
US food giant Cargill has agreed to buy most of Croda’s Performance Technologies and Industrial Chemicals (PTIC) business for €915 million on a cash-free, debt-free basis. The acquisition of the UK group will boost Cargill’s bio-industrial footprint, better serving manufacturers seeking greener ingredients.
Croda’s decision to divest the business, which includes plants in the UK, Netherlands and China, follows a strategic review last year.
“The bioindustrial space is a priority for Cargill, as we strive to support our customers with innovative, nature-based solutions that deliver real-world benefits,” said Colleen May, president of Cargill’s Bio-industrial business. “Combining our diverse, global supply chain and deep operational expertise with Croda’s extensive industrial business capabilities and broad bio-based portfolio will spark a new wave of innovation and create tremendous value for our customers.”
Under the transaction, which is expected to close this summer, Cargill will add nearly 1,000 employees and a strong technology portfolio that supports leading market positions in automotive, polymer and food packaging applications. More than two-thirds of the raw materials Croda uses to make its products are bio-based and renewable.
Cargill’s move builds on other acquisitions to expand its bio-industrial presence. Last September, the Minneapolis-headquartered group agreed to buy Arkema’s epoxides business, gaining production capabilities in bio-based plasticizers and polyols. The month before, it had authorized NatureWorks – Cargill’s joint venture with Thailand’s PTT Global Chemical – to build a new Ingeo polylactic acid manufacturing complex in the Nakhon Sawan Biocomplex.
Last June, Cargill and Germany’s Helm formed a joint venture called Qore to build a first commercial-scale renewable butanediol facility in the US. The plant, at Cargill’s complex in Eddyville, Iowa, is due to start operating in 2024.
Author: Elaine Burridge, Freelance Journalist
