Croda International last week agreed to sell its Chicago-based oleochemicals business to H.I.G. Capital for 46.7 million (U.S. $91 million).
The Chicago oleochemicals business supplies fatty acids and glycerine used in lubricant formulations as well as in personal care and other products. In 2007 the business made an operating profit of 4.6 million on sales of 87.9 million.
Crodas lubricants business is not included in the sale. Croda is selling the Chicago oleochemicals plant, which is run as its own business entity, Rick Hanson, Croda vice president, sales, told Lube Report. The sale will have minimal impact on Crodas lubricants business. They will continue to be a major supplier to us and to other lubricant companies.
The disposal of the oleochemical business is part of Crodas restructuring program following its acquisition of Uniqema in 2006. The sales proceeds will be used to reduce debt, said Croda, which is headquartered in East Yorkshire, U.K.
Going forward, Croda said, the business will function as a standalone operation led by the current management team. All employees will transfer to the acquiring entity, Miami-based private investment firm H.I.G. Capital.