Croda will acquire ICI's Uniqema

ICI has agreed to sell its oleochemicals and surfactantsbusiness, Uniqema, to the British specialty chemicals firm Croda International for roughly $740 million in cash; the unit had been for sale since February. The deal is expected to be completed in the third quarter, subject to various approvals. In 2005, Uniqema had sales of $1.1 billion and pretax earnings of just under $90 million. Croda's sales last year were only about $380 million. Because of the difference in size of the two firms, the acquisition is considered a "reverse takeover" under U.K. regulations. "Acquiring Uniqema has clear industrial logic and a compelling financial case," says Croda CEO Michael Humphrey. He sees the acquisition strengthening Croda's oleochemical specialties business, including in growth markets such as India. Croda, which focuses on products derived from natural raw materials, adds that the purchase brings complementary products and technologies such as alkoxylates, sunscreens, and crop care chemicals. Croda says it has shifted its business away from industrial markets and toward consumer care markets in recent years, and it believes it can do the same with Uniqema.