- Chemical company Croda said it had agreed to acquire Fragrance Spanish Topco, trading as Iberchem, a fragrances and flavours company, for €820m from Eurazeo.

Iberchem, founded in 1985 and is headquartered in Murcia, Spain, generated approximately 80% of its sales from fragrances for personal care and home care products, areas where it had a similar customer profile to Croda.

'Our expansion into the fast-growing fragrances and flavours market further increases our exposure to Consumer Care markets and adds another exciting growth adjacency to Croda's market-leading position,' Croda said.

A further 20% of sales were generated by its Scentium flavours business, principally for food, pharmaceutical and oral care applications.

From 2021, Croda's consumer care sector would comprise the current personal care business, the home care business unit, which currently sits within performance technologies, and Iberchem, the company said.

The company plans to fund the deal via a combination of existing debt facilities and an equity placing, representing about 8% of Croda's issued share capital.

The placing to institutional investors was expected to raise net proceeds of about £600m.

The acquisition was expected to close by the end of 2020.

The company also provided an update on performance, keeping its expectations for the full-year exchanged.

'Trading in the second half of 2020 to the end of October was in line with expectations and the overall trading outlook for the full year remains unchanged,' the company said.

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