10 May 2010 11:12 [Source: ICIS news]
LONDON (ICIS news)--British chemicals firm Croda International has sold its German oleochemicals business for €60.5m ($77.6m; £52.0m) to KLK Emmerich, a subsidiary of the Kuala Lumpur Kepong Berhad group, it said on Monday.
KLK Emmerich will assume retirement benefit obligations of €35.2m relating to the business and pay €25.3m in cash upon completion of the deal, which is subject to German anti-trust clearance and Malaysian Central Bank approval.
The disposal largely completes the company's restructuring of its oleochemical operations following the acquisition of Uniqema in 2006, Croda said.
Sales proceeds will initially be used to reduce Croda’s net debt, which stood at £292.7m on 31 March 2010.
Croda said the transaction would be marginally earnings enhancing in the year ending 31 December 2010.
At 09:32 GMT Croda’s shares were trading up 54.50 pence or 5.92% at 974.50 pence.
($1 = €0.78; €1 = £0.86)
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