UK - Cargill Inc. is acquiring most of the bioindustrial business of Croda International PLC, a British specialty chemicals firm, for $1 billion.

While Cargill already offers some bioindustrial products, Croda's business brings a vast array of new capabilities, including bio-based lubricants used to improve performance in the energy sector, such as wind power.

More than two-thirds of the raw materials used to create the acquired products are bio-based and renewable, according to the companies.

"The bioindustrial space is a priority for Cargill, as we strive to support our customers with innovative, nature-based solutions that deliver real-world benefits," said Colleen May, president of Cargill's bioindustrial business.

The deal is the largest move by Minnetonka-based Cargill into the bioindustrials market, reports StarTribune.

"Combining our diverse, global supply chain and deep operational expertise with Croda's extensive industrial business capabilities and broad bio-based portfolio will spark a new wave of innovation and create tremendous value for our customers," May said.

The deal is expected to close next summer. Cargill will gain 1,000 employees worldwide and five production facilities, including in the Netherlands, China and the United Kingdom, according to Croda's investors' update Wednesday.

Source: StarTribune