Croda Acquires SOLUS biotech to Expand ACTIVES Presence in Asia

Croda announced that it has agreed to acquire Solus Biotech from Solus Advanced Materials for 350 billion Korean won on a debt free and cash free basis. The transaction is subject to regulatory approval.

Solus is located in South Korea, expanding Heda's manufacturing capacity in Asia and will create a new biotechnology research and development center in the region.

This acquisition will significantly strengthen Heda's Beauty Actives product portfolio and increase its exposure in the target high-end market.

Solus Biotech is a leading supplier of naturally derived powdered ceramides, a high growth global market with the potential to further expand into formulated ceramides. The number of new personal care products containing ceramide has doubled in the past five years, mainly used for skin care, but increasingly used in hair care formulas. Obtaining Croda's formulation capabilities will accelerate the development of Solus formula ceramide, create greater value for our global customers, and meet the exciting demand for formula ceramide.

Solus Biotech has over 30 years of experience in biotechnology and fermentation, and is a leading supplier of naturally derived powdered ceramides. Solus also has a series of phospholipids produced in GMP factories, which can be used as delivery systems for pharmaceutical active substances and cosmetics. The company is also developing biotechnology derived retinol, which is an exciting and sustainable alternative to synthetic derived retinol.

This acquisition provides Solus Biotech with existing biotechnology derived ceramide and phospholipid technologies and their emerging capabilities in natural retinol. This acquisition will significantly strengthen Heda's Beauty Actives product portfolio and increase its exposure in the target high-end market. Solus is located in South Korea, expanding Croda's manufacturing capacity in Asia and will create a new biotechnology research and development center in the region.

Steve Foots, CEO of Croda, stated: This is Croda's strategic bull's-eye, consolidating our position as a global leader in providing sustainable natural active substances for personal care, covering three key technology platforms: peptides, ceramides, and retinol. It significantly enhances our sustainable biotechnology capabilities and adds manufacturing and innovation facilities in North Asia, providing a springboard for high-end markets in Asia and other regions. I am particularly excited about their outstanding technology, SOLUS biotech brings rich intellectual property and proprietary technology, and we will be able to deliver it to global customers.

“This is a strategic bullseye for Croda, consolidating our position as a global leader in supplying sustainable, natural actives for personal care across three critical technology platforms of peptides, ceramides and retinol. It significantly enhances our sustainable biotechnology capabilities and adds a North Asia manufacturing and innovation facility, providing a springboard to premium markets in Asia and beyond. I am especially excited about their brilliant technology, with Solus Biotech bringing rich IP and proprietary know-how that we will be able to deliver to customers globally.”