(Alliance News) - Croda International PLC on Monday said it has agreed to buy South Korean biotechnology-devised beauty actives firm Solus Biotech for KRW350 billion, or around GBP232 million.

The FTSE-100 Yorkshire, England-based chemicals maker said it will buy Solus Biotech on a debt-free, cash-free basis from Solus Advanced Materials.

"Solus is a leading supplier of naturally derived powder ceramides, a high-growth global market with further potential to extend into formulated ceramides," Croda noted.

The purchase will provide Croda with access to Solus' ceramide and phospholipid technologies, and growing capabilities in natural retinol. Croda added the acquisition will boost its exposure to "targeted prestige segments" as well as its Asian manufacturing capabilities.

The acquisition is subject to regulatory approval, it noted.

Chief Executive Steve Foots said: "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."

Shares in Croda were up 0.3% to 7,242.00 pence each in London early Monday.

By Sophie Rose; Alliance News reporter

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