Target Information

Croda International Plc, a global leader in specialty chemicals, announced the acquisition of Nautilus Biosciences Canada Inc. ('Nautilus') on January 11, 2018. Nautilus, based in Charlottetown, Prince Edward Island, specializes in marine biotechnology and was founded in 2007 by Professor Russell Kerr. The company focuses on leveraging marine microbial biodiversity to identify and develop novel active materials.

This acquisition enables Croda to harness Nautilus's innovative scientific advancements across its various market sectors. Over the past six years, Croda and Nautilus have successfully collaborated in developing applications for skin care, hair care, and crop care, paving the way for this acquisition.

Industry Overview in Canada

The biotechnology sector in Canada, particularly marine biotechnology, is rapidly evolving, supported by an array of research institutions and innovative companies. Marine biotechnology utilizes marine resources to discover new products and solutions across multiple industries, including pharmaceuticals, agriculture, and environmental sustainability.

Prince Edward Island is emerging as a hub for biotechnology research, thanks to its unique marine biodiversity and supportive academic environment. The presence of reputable institutions like the University of Prince Edward Island has bolstered research capabilities in this field, fostering collaborations that enhance the province's competitiveness in the global biotechnology landscape.

Furthermore, the Canadian government provides incentives for research and development in biotechnology, encouraging both domestic and foreign investments. This favorable environment helps nurture young companies like Nautilus that rely on cutting-edge science to fuel growth and innovation.

As the demand for sustainable and biologically derived products increases globally, Canadian marine biotechnology firms are poised to capitalize on new market opportunities. This growing interest reduces dependency on fossil fuels while promoting environmentally friendly alternatives.

Rationale Behind the Deal

The acquisition of Nautilus by Croda aligns perfectly with the company's commitment to sustainable innovation and growth. By integrating Nautilus’s expertise in marine biotechnology, Croda aims to broaden its portfolio of patented products while enhancing its reputation as a leader in biotechnology.

The strategic establishment of Nautilus as a Croda Centre of Innovation for Marine Biotechnology at the University of Prince Edward Island underscores Croda's long-term vision to expand its research capabilities and market offerings in this area.

Information About the Investor

Croda International Plc is renowned for producing specialty chemicals that cater to some of the most prominent brands worldwide. With a rich history of innovation and excellence, Croda focuses on sustainable practices and the development of green technologies, positioning itself as an industry leader in the specialty chemicals sector.

Through strategic acquisitions and partnerships, Croda continues to enhance its capabilities in various fields, particularly biotechnology. The company's extensive knowledge accumulation and investment into R&D enable it to provide sustainable solutions tailored to client needs.

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The acquisition of Nautilus by Croda appears to be a prudent investment decision, leveraging Nautilus's innovative capabilities in marine biotechnology to enhance Croda's already diverse portfolio. Incorporating Nautilus's expertise can result in the development of unique products that meet the increasing global demand for eco-friendly solutions.

Additionally, this deal offers a significant strategic advantage through the establishment of a dedicated research and innovation center. Such a facility will foster further advancements in marine-derived natural products, which can yield lucrative commercial returns for both entities.

Moreover, Croda's alignment with the University of Prince Edward Island expands its collaborative capabilities within the biotechnology ecosystem, creating likely avenues for future innovation and partnerships. This approach not only solidifies Croda's market position but also contributes positively to the regional economy and scientific community.

In conclusion, Croda's acquisition of Nautilus is set to enhance its biological product capabilities while promoting innovation in marine biotechnology. Given the favorable market dynamics and Croda's commitment to sustainable practices, this acquisition holds significant potential for success.

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