August 2020 acquisition of Avanti Polar Lipids

Shareholders - The Board considered not only the strategic fit but also the alignment of the business with Croda’s Purpose of using Smart science to improve lives™. The Board also considered the financial returns of the acquisition and concluded that it was in the best interest of the Company and its shareholders to approve the transaction.
Communities - The Board took account of the impact of the acquisition on the community. Croda’s expansion plans for Avanti benefited local communities given the need to create new jobs to deliver the growth plans.
Customers - The Board believed that Avanti’s expertise in drug delivery technologies for pharmaceuticals and Croda’s access to global markets, manufacturing expertise and ability to scale up Avanti’s technology would bring great benefits to our customers.
People - The Board felt that the combined businesses would provide a significant contribution to Croda’s ambition to become People Positive. This was later demonstrated when the Board approved a commercial agreement with Pfizer to supply novel excipients used in the manufacture of the critical COVID-19 vaccine candidate.

November 2020 acquisition of Iberchem

Shareholders - The Board decided that the most appropriate method to finance the acquisition was via a combination of the Group’s existing debt facilities and the proceeds of an equity placing. This structure preserved the Group’s robust financial flexibility and balance sheet strength. The Board also took account of the projected financial returns. The Board took account of the need to treat all stakeholders fairly and provided retail investors the opportunity to participate in the equity raise through an offer for shares on the PrimaryBid platform.
Customers - Although an adjacency to Croda’s existing businesses, the Board considered that Croda’s formulation capability would complement Iberchem’s expertise, and that bringing the two businesses together would create a new, full-service offering to meet our customers’ needs.
People - The Board considered the interests of our pension trustees in reaching their decision on the financing structure. UK employees were informed of and given guidance on how to participate in the retail offer should they wish to do so.