Croda International PLC Strategic review of PT&IC businesses (5331X)
May 05 2021 - 01:00AM
UK Regulatory
TIDMCRDA
RNS Number : 5331X
Croda International PLC
05 May 2021
Press Release
5 May 2021
Strategic review of Performance Technologies & Industrial
Chemicals businesses
Croda International Plc ("Croda" or the "Group"), which uses
smart science to create high performance ingredients and
technologies that improve lives, announces a strategic review of
its Performance Technologies and Industrial Chemicals ('PTIC')
businesses. The core objective will be to establish what ownership
structure best serves this part of Croda's business going forward,
to create a stronger platform for its future growth. The review is
consistent with Croda's prioritisation of investments in
faster-growth life science and consumer markets, which now
represent over 80% of the Group's profitability.
PTIC is an excellent, world-leading business, with an impressive
financial track record. It delivers industry-leading margins across
the cycle through well invested manufacturing, innovation and sales
operations, supported by a dedicated and experienced global team.
It has a highly attractive portfolio, offering customers
innovative, sustainable solutions in advanced technologies, and is
focused on fast-growth markets in the circular plastic economy,
electric vehicles and other renewable technologies. This strong
technology portfolio supports PTIC's leading market positions in
automotive, polymer and food packaging applications.
The scope of the strategic review will focus on the businesses
and activities within PTIC that do not directly support the
Consumer Care and Life Sciences sectors. It will consider whether
Croda is the best future owner of all the PTIC businesses within
the context of opportunities to deploy more capital and resources
within PTIC, as well as in Consumer Care and Life Sciences.
The review will assess whether the full potential of PTIC can
best be delivered under Croda, as a stand-alone business, or via a
full or partial divestment. It will consider the extent of the
mutual dependencies between PTIC and the rest of Croda, the
practicality of all options, whilst prioritising the best interests
of all stakeholders, including employees, customers and
shareholders.
The review is expected to conclude by the end of 2021 and, in
the meantime, the Group will continue to deliver an excellent
service for its customers.
The strategic review is being launched in the context of ongoing
improvement in Group trading year to date, continuing the trend
seen in the second half of 2020. Customer demand is strong across
all regions and sectors, including PTIC, in some cases driven by a
recovery in end-consumer demand, in other areas by customer
inventory build ahead of anticipated economic recovery. The Group
will announce its Half Year Results to 30 June on 27 July 2021.
Further information
For enquiries contact:
Investors: David Bishop, Croda +44 7823 874428
Press: Charlie Armitstead, Teneo +44 7703 330269
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