Croda International PLC
03 September 2007
3 September 2007
Croda International Plc
Sale of Refrigeration Lubricants Business
Croda International Plc ('Croda') announces that it has sold its Refrigeration
Lubricants business ('Refrigeration Lubricants') to The Lubrizol Corporation
('Lubrizol') for £62 million, with £59.6m payable in cash at completion and the
balance to come from the release of retained working capital. Completion is
subject only to satisfactory German anti-trust clearance. This transaction is
part of the restructuring programme announced following Croda's acquisition of
Uniqema last year.
Refrigeration Lubricants is a leading global supplier of formulated synthetic
lubricants for refrigeration and air-conditioning compressors. No manufacturing
sites are being sold in this transaction. Going forward, Croda will continue to
supply refrigeration lubricant components to Lubrizol.
Last year Refrigeration Lubricants made a proforma operating profit of £4.0
million on turnover of £38.6 million and had reported gross assets of £11
million at 31 December 2006. A small number of sales and technical employees
will transfer to Lubrizol as a result of this transaction.
The sales proceeds will initially be used to reduce Croda's group indebtedness
which stood at £394 million at 30 June 2007. The transaction is expected to be
marginally earnings dilutive in the year ending 31 December 2007 (see note 1).
The transaction is being effected by way of a sale of assets rather than shares.
The agreement contains warranties customary in a transaction of this nature and
Dresdner Kleinwort acted as financial adviser to Croda on this transaction.
For further information, please
Sean Christie, Group Finance Director Tel: 01405 860551
Charlie Watenphul, Financial Dynamics Tel: 0207 831 3113
1. This statement should not be taken to mean that earnings per share (before
any one-off costs or amortisation of intangibles) of Croda will necessarily be
lower than historic earnings per share (before any one-off costs or amortisation
of intangibles) of Croda and no forecast is intended or implied.
2. Certain statements made in this announcement are forward-looking statements.
Such statements are based on current expectations and, by their nature, are
subject to a number of risks and uncertainties that could cause actual results
and performance to differ materially from any expected future results or
performance expressed or implied by the forward-looking statement. The
information does not assume any responsibility or obligation to update publicly
or revise any of the forward-looking statements contained herein.
3. This announcement is made by Croda and is the sole responsibility of Croda.
Croda is exclusively responsible for the contents of this announcement and
neither Dresdner Kleinwort Limited nor any person acting on Croda's behalf are
responsible for or shall have any liability for any information, representation
or statement relating to Croda contained in this announcement or any information
previously published by or on behalf of Croda or otherwise.
Dresdner Kleinwort Limited, which is authorised and regulated by the Financial
Services Authority, is acting for Croda and for no-one else in connection with
the contents of this announcement and will not be responsible to anyone other
than Croda for providing the protections afforded to customers of Dresdner
Kleinwort Limited or for affording advice in relation to the contents of this
announcement or any matters referred to herein.
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