Company’s reach extends to some of biggest global names

Snaith-based Croda is to buy Dutch company Incotec, a seed enhancement business which specialises in improving farm yields.

Incotec develops and supplies a wide range of proprietary and sustainable technologies for both vegetable seeds and field crops and operates in one of the fastest-growing segments within the crop care market.

The acquisition is expected to complete this Friday.

Steve Foots, chief executive of Croda, said: “Incotec is a rare asset in a niche, high value, fast growing sector of the global crop market.”

He said that Incotec has an experienced research and development led management team and will bring market leading technologies, world class innovation and strong customer relationships to Croda.

“The combination with our own crop care business creates a strong and unique platform for future growth. We believe that our combined innovation strengths, together with our global sales reach, will enable us to be far more responsive in meeting the unmet needs of our customers today and tomorrow,” said Mr Foots.

Founded in 1968, Incotec’s products help to enhance and improve seed performance.

Croda said the firm is a technology rich, capital light, knowledge based business, which for the year to September 30 reported revenues of £50m.

Seed enhancement has been identified as a key market opportunity for Croda’s crop care business.

It said that through the acquisition of Incotec, the technical and formulation expertise of both parties will be further exploited.

This will add innovative seed enhancement technologies to Croda’s existing portfolio of crop care products.

Croda said it will be able to offer a broader, more innovative portfolio of products to its customers, supported by enlarged research and technical capabilities and a dedicated global sales force.

“This will help in feeding the world’s growing population by improving farming yields. Supported by further investment from Croda, the Incotec business will retain its independent identity and strong brand,” said Mr Foots.

In recent results Croda said a robust performance in consumer markets and strong innovation led to improved sales growth and better margins.

The company said group sales rose 2.3 per cent in the three months to September 30, with sales up 4.3 per cent in the first three quarters of its financial year.

The firm said sales growth slowed in the third quarter, reflecting a stronger comparative period last year.

“Nevertheless, growth in our consumer-facing Personal Care and Life Sciences sectors continued,” the group said in a trading update.

However industrial markets were more challenging during the third quarter, which hit the firm’s Performance Technologies division.

Currency translation reduced third quarter reported sales by 0.9 per cent and profit by 1.8 per cent, after the weak euro more than offset a stronger US dollar.

Including the currency effect, third quarter reported sales rose by 1.4 per cent to £262.5m.

“Our focus on innovation continues to support improved sales, with growth of new and protected products well ahead of overall sales,” the firm said.

North America and Asia delivered another strong performance while third quarter sales in Europe remained slightly positive year-on-year.

However Latin America was noticeably weaker, due to difficult macro economic conditions.