Croda Gets Chinese Regulatory Approval To Buy 65% Equity Interest In Sipo
LONDON (dpa-AFX) - Croda International Plc (CRDA.L), a specialty chemicals company, Monday said it received Chinese regulatory approval to acquire a 65 percent equity interest in a non-listed natural specialty chemicals manufacturer, Sichuan Sipo Chemical Co. Ltd or Sipo, from Sichuan Forever Holding Co. Ltd and certain individual shareholders, for a value of 32.8 million pounds, including 8 million pounds of debt, subject to working capital, net cash and fixed asset adjustments. Sichuan Forever Holding Co. Ltd will retain a 35 percent stake in Sipo and remain as a minority shareholder.
Through the deal, Croda initially focuses to grow sales from its Performance Technologies business to the Polymer Additives and Lubricants sectors. In 2012, Sipo reported a turnover of 28 million pounds and EBITDA of 3.1 million pounds.
Steve Foots, Chief Executive of Croda, said: "...Sipo's manufacturing capabilities together with our marketing expertise and sales force infrastructure are an exciting combination..."
Copyright RTT News/dpa-AFX