Brenntag Closes China Purchases
Brenntag has completed two purchases in China within its Specialties division. On Jul. 23, it closed the acquisition of the first tranche – 67% - of food ingredients specialist Zhongbai Xingye. Purchase of the second tranche – and full acquisition – of the Beijing-based company is expected to be finalized by the end of 2024.
In addition, at the end of June, Brenntag took full control of pigments and additives specialist Wellstar Group with the purchase of the remaining 49% of the business. The German multinational distributor bought the first 51% stake in Wellstar in 2017, operating the business as a joint venture until it took over the remaining shareholding.
“Strengthening our Brenntag Specialties division, particularly in China, as well as in the Asia-Pacific region in general, is a central pillar of our company’s M&A strategy. I am particularly delighted that we stuck exactly to our timing in both cases and were able to successfully close the important acquisition steps in the dynamic and growing Asian markets as planned,” said Henri Nejade, member of the management board of Brenntag and chief operating officer of Brenntag Specialties.
Zhongbai Xingye is dedicated to the distribution of a wide range of specialty food ingredients, including dairy products and proteins. Brenntag said its purchase of the leading player in mainland China is an important step to become a full-line distributor of food ingredients in the Asian market.
Headquartered in Hong Kong, the Wellstar Group operates three subsidiaries in mainland China – in Shenzhen, Guangzhou and Shanghai – supplying high-performance pigments, effect pigments, resins and kaolin used in a broad variety of industries, including coatings, inks, plastic and cosmetics. It also has an application lab for coatings.
Author: Elaine Burridge, Freelance Journalist
