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Croda International sells German chemicals business for €60.5 mln

FTSE 250 constituent Croda International is selling its Emmerich Site and associated business in Germany to a subsidiary of the KLK Group for €60.5 million.

As part of the deal KLK Group will assume all retirement benefit obligations related to the business of approximately €35.2 million.  The remaining €25.3 million will be paid to Croda in cash. “The disposal largely completes Croda's restructuring programme to re-position its oleochemical operations following the acquisition of Uniqema in 2006,” Croda stated.

The Emmerich Site produces fatty acids and glycerine. On a pro-forma basis the business had sales of £80.0m and made an operating loss of £2.1million in 2009.

Croada intends to use the proceeds of the sale to pay down its debt pile.  The company’s net debt position as of 31 March 2010 was £292.7 million.

Disclosure: The author holds no positions in the company