Croda sells Emmerich site to KLK Emmerich
Fatty acids production facility acquired for €60.5m
Croda International has agreed to sell its site based in Emmerich, Germany and associated businesses in the country to KLK Emmerich, a subsidiary of the KLK Group (Kuala Lumpur Kepong Berhad). As part of the €60.5m transaction, KLK Emmerich will assume IAS19 retirement benefit obligations relating to the business of approximately €35.2m, so cash payable at completion will be €25.3m.
Croda acquired the Emmerich site, which produces fatty acids and glycerine, as part of its 2006 acquisition of Uniqema.
Completion of the transaction is said to be subject to German anti-trust clearance and Malaysian Central Bank approval. Croda also states that it will continue to supply and source some products to and from the business under normal third party commercial terms.
