Cargill, Incorporated signed a definitive agreement to acquire 77% stake in Performance Technologies and Industrial Chemicals Businesses from Croda International Plc (LSE:CRDA) for approximately £670 million on December 22, 2021. The divested business, which represented 77% of PTIC's 2020 revenue, is comprised of five manufacturing facilities, including the Gouda plant in the Netherlands, the Hull plant in the UK and Croda Sipo in China (a joint venture in which Croda owns 65%), together with additional laboratory facilities supporting key aspects of the divested business' activities in Smart Materials, Energy Technologies and Industrial Chemicals. The consideration of £780 million includes 100% of Sipo in the divested business.

If the sale of 100% of Sipo cannot be realised, Sipo will be excluded from the sale, reducing the consideration by approximately £120 million. PTIC reported revenue of approximately £500 million and adjusted operating profit was £55.9 million for the period end on June 30, 2021. Croda intends to reinvest proceeds from the transaction into faster growth areas, increasing its exposure to health care and further developing its position as a sustainability leader in consumer care and crop care markets.

The transaction is subject to receiving customary regulatory approvals but is not subject to approval by Croda's or Cargill's shareholders. Croda and Cargill are currently working together on the process to separate the two businesses, with completion of the transaction expected in Summer 2022. Shirav Patel and Andrew Foster of Morgan Stanley & Co.

International Plc acted as financial advisors; James Hartop of Centerview Partners LLC acted as financial advisor; Oliver Lazenby, Giles Pratt, Holly Baker, Alastair Chapman, Alice Greenwell, Dawn Heath and Peter Clements of Freshfields Bruckhaus Deringer LLP acted as legal advisor; and Charlie Armitstead of Teneo Securities LLC acted as financial advisor to Croda in the transaction. HSBC is acting as a Sole Financial Adviser to Cargill Inc. Ernst & Young LLP (UK) acted as Due Diligence Provider to Croda International Plc (LSE:CRDA).