Croda sells Chicago subsidiary
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The restructuring programme at chemicals firm Croda International moved on another step as the company disposed of its Chicago Oleochemicals business.
Croda is selling Chicago Oleochemicals to private equity firm HIG Capital LLC for £46.7m. HIG will pay £38.1m in cash on completion of the transaction, with the rest of the consideration met through the issue of loan note due in 2014 but repayable earlier under certain circumstances.
Chicago Oleochemicals, which supplies fatty acids and glycerine, made an operating profit of £4.6m in 2007 on turnover of £87.9m. As at the end of March it had gross assets of £54.7m.
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The disposal is expected to be mildly earnings dilutive in 2008.
The proceeds from the sale will be used to reduce borrowings.
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