Switzerland’s DKSH has signed a contract to buy Axieo, a specialty chemicals distributor headquartered in Victoria, Australia, with an office also in Auckland, New Zealand.

The acquisition boosts DKSH’s geographical presence in the Pacific area for its Performance Materials business unit and also marks the Swiss group’s entry into the region’s agrochemicals markets.

Axieo distributes specialty chemicals for various industrial applications as well as to the cosmetics, pharma and food & beverage industries. It employs 120 people and generates annual net sales of around 130 million Swiss francs.

“By acquiring Axieo we actively drive forward market consolidation in the specialty chemicals industry in Asia Pacific. We are increasing our presence in the region to an extended customer base through our complementary portfolios and become a leading player in Australia and New Zealand,” commented Thomas Sul and Natale Capri, co-heads for DKSH’s Business Unit Performance Materials.

Together with Monash University in Melbourne, Axieo also runs two innovation centers for industrial and life science products, developing formulations for both new and existing customers. DKSH said the addition of these two centers will take its innovation and formulation network to 46 facilities worldwide.

The acquisition, which will be immediately earnings accretive for DKSH, is expected to complete during the first quarter of 2020, subject to certain conditions. Financial terms were not disclosed.

Last month, DKSH also agreed to buy Crossmark, a field marketing provider in Australia and New Zealand. This transaction is also expected to close during the first quarter of 2020.