6th Jul 2020 15:00
(Alliance News) - Croda International PLC on Monday said it has agreed to acquire Avanti Polar Lipids Inc for USD185 million initial, with an additional earnout of up to USD75 million based on near-term commercial opportunities using Avanti's lipid-based solutions.
Avanti makes high-purity polar lipids that are increasingly being used as delivery systems for complex therapeutic drugs and in next-generation mRNA vaccines.
The Yorkshire-based speciality chemicals company said the acquisition will more than double its research and development capability in drug delivery. The acquisition will see Avanti provide a new channel to market Croda's ingredients for early-stage pharmaceutical research in both commercial and academic organisations worldwide, as well as combine its position and flexibility in pharmaceutical R&D applications with Croda's access to global markets, manufacturing expertise and capacity.
Croda said on completion, Avanti will continue to operate under its existing brand and led by the current management team. It will become a part of Croda's Life Sciences sector and sit within the Health Care business.
"With their exciting drug delivery technologies, Avanti is a market leader in a high growth niche of the health care market, serving over 3,000 customers globally. Bringing Avanti's best-in-class expertise into Croda also significantly enhances our presence across the pharma product lifecycle, including early stage R&D, clinical trials, analysis and formulation. I am confident that Avanti will prove transformative to the capabilities and performance of our Life Sciences sector," said Croda's Chief Executive Steve Foots.
The acquisition is being financed by a three-year term loan.
Croda shares were trading 1.9% higher at 5,296.00 pence each on Monday afternoon in London and 3.8% higher than at the start of the year.
By Ife Taiwo; [email protected].
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