LONDON — Cargill will acquire a majority of Croda’s performance technologies and industrial chemicals business for $1.03 billion on a cash-free, debt-free basis.

This acquisition will expand Cargill’s bioindustrial footprint and ability to supply “greener” ingredient solutions.

The transaction is expected to close in summer 2022.

“The bioindustrial space is a priority for Cargill, as we strive to support our customers with innovative, nature-based solutions that deliver real-world benefits,” said Colleen May, president of Cargill’s Bioindustrial business. “Combining our diverse, global supply chain and deep operational expertise with Croda’s extensive industrial business capabilities and broad bio-based portfolio will spark a new wave of innovation and create tremendous value for our customers.”

The transaction is comprised of five manufacturing facilities, including facilities in Gouda, Netherlands; Hull, UK; and Sipo in China (a joint venture in which Croda owns 65%) and additional lab facilities supporting key aspects of the divested business’ activities in smart materials, energy technologies and industrial chemicals.

If the sale of 100% of Sipo cannot be realized, Croda said Sipo will be excluded from the sale.

Under the agreement, Cargill would gain nearly 1,000 employees around the world and production facilities spread across Europe and Asia, along with a strong technology portfolio that supports leading market positions in automotive, polymer and food packaging applications. Aligning with Cargill’s commitment to sustainability, more than two-thirds of the raw materials used to manufacture these solutions are bio-based and renewable.

“Cargill is a company with a distinguished history and strong values,” said Steve Foots, chief executive officer of Croda. “Under its ownership, the divested business and our talented, hardworking employees can look forward to a bright future.”

The Croda acquisition would greatly expand the company’s bioindustrial market presence, especially in Europe, the United States and Asia, all high-growth markets for bio-based solutions. This acquisition builds on other recent moves by Cargill to expand its presence in the bioindustrial space, including its QORE and NatureWorks joint ventures’ greenfields, as well as its acquisitions of Floratech and Arkema’s epoxides business. Taken together, these moves leave Cargill well-positioned to support customers with innovative, nature-derived solutions across a broad range of industries and applications.