Croda International Plc., a British specialty chemicals company, is set to acquire South Korean bio materials producer Solus Biotech Co. for some 350 billion won ($285.9 million).
SkyLake Equity Partners, a South Korean private equity firm, plans to sign a deal on Friday to sell its 100% stake in Solus Biotech to Croda, according to industry and investment banking sector sources in Seoul on Thursday.
SkyLake had selected Solvay S.A. as a preferred bidder for Solus Biotech late last year but failed to sell the company to the Belgian chemicals maker as they could not reach an agreement on details. The PE firm then approached other companies including Croda, German specialty chemicals company Evonik Industries AG and US food processing giant ADM.
Croda reportedly decided to take over Solus Biotech as the company is a major manufacturer of ceramide, a high-priced skin and hair care product material, with a 10% share in the global market, according to the sources.
The South Korean company was known to have reported earnings before interest, taxes, depreciation and amortization (EBITDA) of some 11 billion won last year with sales of 47 billion won.
FOR COPPER FOIL BUSINESSCroda, which is listed on the London Stock Exchange, reorganized its business portfolio to switch its focus from petrochemicals to cosmetics materials through acquisitions.
The Snaith-based company founded in 1925 currently sells more than 140 cosmetics materials in the global market under brands such as Croda, Crodarom, Sederma and Alban Muller.
SkyLake, led by ex-Information and Communication Minister and Samsung Electronics Co. Digital Media President Chin Dae-je, bought Solus Advanced Materials Co., a copper foil producer, for about 700 billion won from South Korea’s Doosan Group in 2020.SkyLake last year split off the bio business of Solus Advanced Materials to establish Solus Biotech.
The PE firm has been seeking the sale of the company to focus on copper foil, a key material for secondary batteries, given rapid growth in the global electric vehicle industry. It is expected to use the proceeds to invest in Solus Advanced Materials’ production facilities.
Write to Chae-Yeon Kim at
why29@hankyung.com
Jongwoo Cheon edited this article.
