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Croda Shares Surge 3.22% on £736M Iberchem Acquisition

Croda International
Simon Mugo

Shares of Croda International Plc (LON: CRDA) surged 3% today after the company announced the acquisition of iberchem, a Spanish fragrances and flavours company, for £736 million.

The chemicals company also revealed that it intends to raise £600 million via a share placement to fund the acquisition.

Croda clarified that the acquisition would add a high-growth consumer business to its portfolio, giving it massive exposure to emerging markets given Iberchem’s presence in 120 countries globally.

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Personal care fragrances and home care products account for 80% of Iberchem’s, which bears a close similarity to Croda’s business. Additionally, its Scentium flavours business, which caters to the food, pharmaceutical and oral care markets, contributes the remaining 20% of revenues.

Croda intends to combine its formulation capabilities with Iberchem’s expertise to create new ways of meeting customer needs, and it expects to achieve operational synergies worth €25 million annually by the third year and €48 million by the fifth year.

The chemicals company intends to raise the £600 million from institutional investors by issuing shares worth 8% of its current total share capital.

Croda share price

Tradingview chart of Croda share price 18112020

Croda shares surged 3.22% today to trade at 6280p having rallied from yesterday’s closing price of 6084p.

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Simon Mugo
Simon Mugo
Contributor

Simon ist Autor und Analyst für den Bereich Finanzwesen und blickt auf über sechs Jahre professionelle Erfahrung als Trader zurück. Er absolvierte einen Bachelor in Mathematik und Informatik und hat eine Leidenschaft für die Finanzmärkte. Simon handelt FX, Rohstoffe und Aktien. Er konzentriert sich auf Price Action Trading.