Croda Europe Limited (LON:CRDA) today announced that further to the completion of its recommended cash offer for the entire issued and to be issued ordinary share capital of Plant Impact plc, which was effected by way of a scheme of arrangement under Part 26 of the Companies Act 2006 on 28 March 2018, its board of directors has taken certain necessary courses of action which differ from the statements of intent made pursuant to Rules 2.7(c)(iv) and 24.2 of the Code, as set out in its announcement of 16 February 2018 and the scheme document published on 26 February 2018.
Reasons for changes to the Stated Intentions
As set out in the Offer Documentation, it was the Croda Europe Board’s intention, following completion of the Offer, to undertake an exercise to evaluate the market positioning and strategy of Plant Impact and how best to integrate Plant Impact, its activities and employees into the wider Croda group. This evaluation exercise is now complete and its findings have necessitated certain changes to the original Stated Intentions in order to best utilise Plant Impact’s technology, skills and wider employee base and position the business effectively to address its end markets in a sustainable way.
These internal changes will have no impact on existing business, customer service levels or Croda’s fundamental rationale for the acquisition. Overall the integration programme has been positive, with the majority of Plant Impact’s employees being successfully integrated into the wider Croda group, which employs more than 4,300 people globally.
Updates to Stated Intentions in respect of Plant Impact’s Brazilian activities
Croda has identified a specific need to change Plant Impact’s commercial strategy and the route to market in Brazil. As a consequence, it is intended that there will be a reconfiguration of the sales force together with an associated redundancy programme in relation to Plant Impact’s agricultural sales team in Brazil. Following this programme, Plant Impact’s business in Brazil will operate from local offices of the Croda group and the lease on the Plant Impact office in Brazil will not be required and therefore will not be renewed. The net impact of Croda’s integration plans on Plant Impact Brazil is likely to be a reduction of nine roles.
As part of its broader global activities, Croda remains positive about the prospects for Plant Impact’s business and is continuing to invest resources, time and capital in several areas such as research and development activity aimed at sustainable long-term growth.
