Croda International Acquires Solus Biotech

Croda International PLC agreed to buy Solus Biotech from Solus Advanced Materials Co. The purchase price is nearly $280 million at current exchange rates. The move expands Croda’s Asian manufacturing capability. Based in South Korea, Solus Biotech produces biotech-derived ceramide and phospholipid technologies, and natural retinol.

According to Croda, Solus is a leading supplier of naturally derived powder ceramides, a high-growth global market with further potential to extend into formulated ceramides. The number of new personal care products containing ceramides has doubled during the past five years, principally for skin care but increasingly for hair care formulations. Access to Croda’s formulation capabilities will accelerate development of Solus’ formulated ceramides to create even greater value for Croda's customers globally and address exciting, formulated ceramide demand, according to the company.

Solus also brings a portfolio of phospholipids, spanning pharmaceutical applications and beauty care. These naturally derived phospholipids are produced at a GMP plant and can be used as delivery systems for pharmaceutical actives and cosmetics. Croda said the move strengthens its  pharma presence in Asia and enable collaborative R&D with Croda’s Avanti business for the supply of lipid systems for drug delivery. Solus says it is Korea's only producer of high purity natural ceramide manufactured via yeast fermentation.

“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,” said Croda CEO Steve Foots. “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. I am especially excited about their brilliant technology, with Solus bringing rich IP and proprietary know-how that we will be able to deliver to customers globally.” 

Solus’ growth will be accelerated by gaining access to Croda's technical and innovation capabilities, particularly in formulation, and by accessing Croda's global selling network. The acquisition will give Croda greater ability to serve luxury beauty customers in Asia and globally, and the opportunity to accelerate delivery of Avanti’s pharma product pipeline.