A Yorkshire-based manufacturer of speciality chemicals will be £46.7 million better off following the sale of its Chicago business to HIG Capital.

A Yorkshire-based manufacturer of speciality chemicals will be £46.7 million better off following the sale of its Chicago business to HIG Capital.

Croda International plc has agreed to dispose of Chicago Oleochemicals as part of the business’ restructuring programme. The move to re-position its oleochemical operations follows the acquisition of Uniqema in 2006.

The £46.7 million consideration will involve an asset sale and comprises a cash payment of £38.1 million on completion with the balance as a loan note due in 2014. Proceeds from the sale will initially be used to reduce the net debt of the Croda group.

Dresdner Kleinwort acted as financial adviser and Foley and Lardner acted as legal counsel to Croda on this transaction.

Croda International produces chemicals for the personal care, home care, health care, industrial and polymer markets. Its North American subsidiary Chicago Oleochemicals is a supplier of fatty acids and glycerine, used in personal care, household and industrial formulated products. Last year, the business made an operating profit of £4.6 million on turnover of £87.9 million. Gross assets of £54.7 million were posted at the end of March.