Croda International Plc (LON:CRDA) today announced that a definitive agreement has been signed with Brenntag Nordic A/S to acquire Brenntag Biosector A/S. Biosector is a specialist in the manufacture and supply of adjuvants serving the human and veterinary vaccine market. The total consideration is €72 million in cash and the transaction is expected to close by the end of 2018.
Biosector was founded in 1939 and operates from a GMP-certified adjuvants manufacturing facility in Frederikssund, Denmark. Its product portfolio comprises innovative aluminium and saponin-based adjuvants. Aluminium-based adjuvants are extensively used in human and veterinary vaccines to increase their effectiveness. They also provide a platform to introduce new technically advanced saponin-based adjuvants.
Vaccine adjuvants are a natural extension to Croda’s market leading, high-purity excipient delivery systems in its Health Care business. These adjuvants represent a niche, high-growth market, driven by increased healthcare spending alongside advances in biotechnology and the growing need for preventative treatments. Biosector is differentiated through its high quality portfolio of adjuvants, with a strong position in human applications.
On completion, Biosector will be integrated into Croda’s Health Care business within the Life Sciences sector. It will continue to be led by its dedicated team, all of whom have extensive, class leading credentials and pharmaceutical experience. Croda will leverage its formulation and purification expertise to accelerate the development of Biosector’s rich pipeline of next generation adjuvant systems. Croda will also utilise its dedicated global sales network to deliver Biosector’s growth potential.
Steve Foots, Chief Executive of Croda, commented:
“Biosector is a rare asset, in a high value, fast growing sector of the global pharmaceutical market. With an experienced high-quality team, Biosector brings world-class protected technologies and industry-leading manufacturing facilities. Furthermore, the strong cultural alignment between Biosector and Croda enhances our highly technical-based sales approach and emphasis on value over volume. The opportunity to quickly build upon Biosector’s impressive track record to date is enormously exciting and we look forward to welcoming the team to Croda.”