Chemical manufacturer,Croda International Plc, has agreed to acquire Incotec Group BV, a Netherlands-based, independent seed enhancement business, for €155 million (US$109 million). Croda has identified seed enhancement as a growth opportunity for its Crop Care business.Since its founding in 1968, Incotec has developed and marketed a diverse range of proprietary and sustainable enhancements for both crop and vegetable seeds which improve seed performance resulting in improved agricultural yields. The addition of Incotec will expand its portfolio of products available to its customers, and will expand its global sales force while strengthening and expanding its worldwide research and technical capabilities.
“Incotec is a rare asset in a niche, high value, fast growing sector of the global crop market. With an experienced research and development led management team, Incotec brings differentiated market leading technologies, world class innovation and strong customer relationships,” said Steve Foots, chief executive officer at Croda in a company release. “The combination with our own Crop Care business creates a strong and unique platform for future growth. We believe that our combined innovation strengths, together with our global sales reach, will enable us to be far more responsive in meeting the unmet needs of our customers today and tomorrow.”
The investment from Croda will support Incotec in remaining an independent entity and brand, providing analytical quality testing, encrusting and pelleting expertise, disinfecting, film coating, and priming services and technologies.
Commenting on the deal, Douwe Zijp, chief executive of Incotec Group said, “We started to look for a new partner and shareholder earlier this year and are extremely happy to have found the right partner in Croda. Together, we will continue to focus on the empowerment and encouragement of innovation, sustainability and customer intimacy. We are excited about our joint future and being part of the Croda Group.”
The deal is scheduled to close on December 4, 2015.