Croda to acquire Solus Biotech to expand Beauty Actives business in Asia

Croda International will acquire Solus Biotech, a South Korea-based biomaterials company, from Solus Advanced Materials in a debt- and cash-free transaction valued at KRW350 billion (£232 million).

With the proposed acquisition, Croda International anticipates to strengthen and expand the company’s Beauty Actives portfolio and Asian manufacturing capabilities as well as creating a new biotechnology research and development (R&D) hub in the region.

Croda International will also have access to Solus Biotech’s current biotech-derived ceramide and phospholipid technologies as well as biotech-derived retinol.

In addition, the British specialty chemicals company will accelerate the delivery of Avanti’s pharma product pipeline, including lipid systems for drug delivery.

Solus Advanced Materials supplies naturally derived powder ceramides, with further potential to extend into the growing formulated ceramides market.

Croda International to acquire Solus Biotech to expand Beauty Actives business in Asia. Photo courtesy of Croda International Plc.

The transaction is expected to help Solus Advanced Materials accelerate formulated ceramides development to meet the increasing demand for formulated ceramide through Croda International’s formulation capabilities.

Solus Advanced Materials operates its R&D center in Bundag near Seoul and production center in Iksan, South Korea.

Steve Foots — Croda International Chief Executive said: “This is a strategic bullseye for Croda, consolidating our position as a global leader in supplying sustainable, natural actives for personal care across three critical technology platforms of peptides, ceramides and retinol.

“It significantly enhances our sustainable biotechnology capabilities and adds a North Asia manufacturing and innovation facility, providing a springboard to premium markets in Asia and beyond.

“I am especially excited about their brilliant technology, with Solus bringing rich IP and proprietary know-how that we will be able to deliver to customers globally.”

Solus Biotech generated around KRW43 billion (£28 million) in sales in 2022.

The acquisition is subject to regulatory approval.

In August 2020, Croda International acquired Avanti Polar Lipids, a provider of drug delivery systems for next-generation pharmaceuticals.