Croda acquires Alabama-based drug delivery company

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Croda International Plc has agreed to acquire Avanti Polar Lipids, Inc. a drug delivery technologies company.

Croda will acquire Avanti for $185 million on a debt and cash-free basis, with an additional earnout of up to $75 million based on near-term commercial incentives.

Croda, based in the United Kingdom, operates a specialty chemicals plant at Atlas Point, New Castle, near the Delaware Memorial Bridge.

Avanti, founded in 1967 by Dr. Walter and Rowena Shaw operates from one site in Alabama.

Of its 150 employees, more than 100 are in scientific roles, and 29 have PhD qualifications. The company typically launches 125 products each year.

The company’s lipid technologies ensure the targeted, controlled and extended-release of active pharmaceutical ingredients increasing their effectiveness and safety.

Avanti’s technology complements Croda’s own capabilities in drug delivery systems, vaccine adjuvants, and immunotherapy. The acquisition will more than double Croda’s research and development capability in drug delivery.

Avanti will also provide a new channel to market Croda’s ingredients for early-stage pharmaceutical research in both commercial and academic organizations worldwide.

The acquisition is subject to customary US regulatory approvals. On completion, Avanti will continue to operate under its existing brand, led by the current management team. It will become a part of Croda’s Life Sciences sector and sit within the fast-growing Health Care business.

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