Acquisition of global vaccine adjuvant specialist
17 December 2018
Croda International Plc
Acquisition of global vaccine adjuvant specialist
Croda International Plc ('Croda') today announces that a definitive agreement has been signed with Brenntag Nordic A/S to acquire Brenntag Biosector A/S ('Biosector'). Biosector is a specialist in the manufacture and supply of adjuvants serving the human and veterinary vaccine market. The total consideration is €72 million in cash and the transaction is expected to close by the end of 2018.
Biosector was founded in 1939 and operates from a GMP-certified adjuvants manufacturing facility in Frederikssund, Denmark. Its product portfolio comprises innovative aluminium and saponin-based adjuvants. Aluminium-based adjuvants are extensively used in human and veterinary vaccines to increase their effectiveness. They also provide a platform to introduce new technically advanced saponin-based adjuvants.
Vaccine adjuvants are a natural extension to Croda's market leading, high-purity excipient delivery systems in its Health Care business. These adjuvants represent a niche, high-growth market, driven by increased healthcare spending alongside advances in biotechnology and the growing need for preventative treatments. Biosector is differentiated through its high quality portfolio of adjuvants, with a strong position in human applications.
On completion, Biosector will be integrated into Croda's Health Care business within the Life Sciences sector. It will continue to be led by its dedicated team, all of whom have extensive, class leading credentials and pharmaceutical experience. Croda will leverage its formulation and purification expertise to accelerate the development of Biosector's rich pipeline of next generation adjuvant systems. Croda will also utilise its dedicated global sales network to deliver Biosector's growth potential.
Steve Foots, Chief Executive of Croda, commented:
"Biosector is a rare asset, in a high value, fast growing sector of the global pharmaceutical market. With an experienced high-quality team, Biosector brings world-class protected technologies and industry-leading manufacturing facilities. Furthermore, the strong cultural alignment between Biosector and Croda enhances our highly technical-based sales approach and emphasis on value over volume. The opportunity to quickly build upon Biosector's impressive track record to date is enormously exciting and we look forward to welcoming the team to Croda."
Further information:
Investors: Conleth Campbell, VP Investor Relations, Croda Tel: +44 1405 860 551
Media: Charlie Armitstead, Teneo Tel: +44 20 3603 5220
About Croda:
Established in 1925, Croda is the name behind high performance ingredients and technologies in some of the world's biggest and most successful brands: creating, making and selling speciality chemicals that are relied on by industries and consumers everywhere.
Croda has a network of over 4,300 passionate and committed employees, working together as one global team across manufacturing sites and offices in 37 countries. Croda is a FTSE100 company with a flexible structure that allows it to focus on developing and delivering innovative, sustainable ingredients that its customers can build on in: Personal Care, Life Sciences (Health Care and Crop Care), Performance Technologies (Smart Materials, Energy Technologies, Home Care & Water Treatment) and Industrial Chemicals.
About Brenntag:
Brenntag, the global market leader in chemical distribution, covers all major markets with its extensive product and service portfolio. Headquartered in Essen, Germany, the company operates a global network with more than 530 locations in 73 countries and a workforce of more than 16,000 employees. In 2017, the company generated sales of EUR 11.7 billion (USD 13.3 billion). Brenntag connects chemical manufacturers and chemical users. The company supports its customers and suppliers with tailor-made distribution solutions for industrial and specialty chemicals. With over 10,000 products and a world-class supplier base, Brenntag offers one-stop-shop solutions to around 185,000 customers. This includes specific application technology, an extensive technical support and value-added services such as just-in-time delivery, product mixing, formulation, repackaging, inventory management and drum return handling. Long-standing experience and local excellence in the individual countries characterise the global market leader for chemical distribution.
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