Cargill Velocity Holdings Limited agreed to acquire an unknown majority stake in Bio-based industrial business from Croda International Plc (LSE:CRDA) for an enterprise value of approximately €920 million on December 22, 2021. The consideration is on a cash-free, debt-free basis. 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 €915 million includes 100% of Sipo in the divested business. If the sale of 100% of Sipo cannot be realized, Sipo will be excluded from the sale, reducing the consideration by €140 million. The retained parts of PTIC will provide integral support to the Group’s Consumer Care and Life Sciences sectors. For last twelve months Bio-based industrial business reported revenue of €449.7 million and adjusted operating profit of €57.7 million. 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. 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.