Croda International Plc. announces that it has agreed to acquire Incotec Group B.V., an independent world leader of innovative seed enhancement, headquartered in Enkhuizen in the Netherlands. The total consideration, inclusive of debt, is €155 million (£109m). The acquisition is expected to complete on 4 December 2015.
Founded in 1968, Incotec develops and supplies a wide range of proprietary and sustainable technologies for both vegetable seeds and field crops. It operates in one of the fastest growing segments within the crop care market. Incotec’s products and services help to enhance and improve seed performance, allowing greater efficacy and functionality to be delivered directly by the seed. Incotec is a technology rich, capital light, knowledge based business, which for the year ended 30 September 2015 reported (unaudited) revenues of €71million.
Seed enhancement has been identified as a key market opportunity for Croda’s Crop Care business. Through the acquisition of Incotec, the technical and formulation expertise of both parties will be further exploited. This will add innovative seed enhancement technologies to Croda’s existing portfolio of high performance adjuvants and formulation aids. Supported by enlarged and enriched research and technical capabilities and a dedicated global sales force, Croda will offer a broader, more innovative portfolio of products to its customers. This will help in feeding the world’s growing population by improving farming yields. Supported by further investment from Croda, the Incotec business will retain its independent identity and strong brand.
Steve Foots, Chief Executive of Croda, commented:
“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. 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.”