Brenntag Buys South Africa’s Plastichem Group
Brenntag has agreed to purchase South African specialty distributor Plastichem for an undisclosed sum. The deal gives Brenntag a key position in the polymers industries in South Africa and beyond.
Based in Kempton Park, Plastichem supplies high performance polymers for plastics and rubber products used in the automotive, packaging, electronics and engineering industries. The company also has a focus on entire supply chain solutions and services for customers in South Africa and Sub-Saharan Africa.
Brenntag said the move is aligned with its strategy to build a chemical distribution platform in key industries in Africa and the Middle East. “With the acquisition, we build up market expertise in the continuously growing plastics and rubber industries in the region. This will help us to further expand our business in South Africa with our existing suppliers as well as cover the Sub-Sahara region,” said Carl Blomme, regional president for Brenntag Europe West & Middle East Africa.
The deal follows the purchase of another South African firm, Lionheart Chemical Enterprises, in February this year. Headquartered in Johannesburg, the specialty distributor operates mainly in the food and beverage sector.
Plastichem is expected to achieve sales of around €27 million in the 2016 financial year. The transaction is expected to close in the coming weeks.
