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Croda To Acquire Iberchem - Quick Facts

Croda International Plc (CRDA.L) has agreed to acquire the entire issued share capital of Fragrance Spanish Topco, S.L., trading as Iberchem, a global fragrances and flavours company, for a total consideration of 820 million euros on a debt-free, cash-free basis. The acquisition is expected to close by the end of 2020. Croda anticipates the acquisition to be earnings accretive in the first full fiscal year following completion and strongly accretive thereafter.

Iberchem is headquartered in Murcia, Spain. As at August 2020, the company had 14 manufacturing facilities, 10 R&D centres and a commercial presence in 120 countries. Iberchem has been majority owned by Eurazeo since 2017.

Croda said the consideration will be funded via a combination of the Group's existing debt facilities and the proceeds of an equity placing, representing approximately 8% of the Group's issued share capital. The placing of new ordinary shares in the capital of the company to institutional investors is anticipated to raise net proceeds of approximately 600 million pounds. Also, Croda announced a retail offer via PrimaryBid of new ordinary shares of 0.10609756 pounds each in the capital of the company. The retail offer will be open to retail investors in the United Kingdom.

Croda International reported that its trading in the second half of 2020 to the end of October was in line with expectations and the overall trading outlook for the full year remains unchanged.

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