Brenntag to Acquire Singapore’s EPChem
Germany-based global chemical distributor Brenntag has agreed to purchase the distribution business of Singapore’s EPChem Group for an undisclosed sum. EPChem, which had sales of around $54.6 million in the 12 months to May 2016, distributes special performance chemicals dedicated to waxes and wax-related products for industries mostly in the Asia-Pacific region. The acquisition will include the group’s businesses in Indonesia and China.
“Waxes have a broad range of applications in several industries such as personal care, coatings, adhesives, and roofing and paving. These are attractive industries with high growth potential, especially for innovative products,” commented Anthony Gerace, managing director, mergers & acquisitions at Brenntag Group.
Henri Nejade, CEO, Brenntag Asia-Pacific, added that the acquisition will strengthen and expand its specialty chemicals footprint in the region, one of the group’s strategic growth objectives.
In separate news, the Mülheim-headquartered distributor has also agreed to acquire the lubricants business of US firm NOCO as it continues to beef up its presence in the North American market. Previous lubricants acquisitions in North America include Mayes County Petroleum in September, and J.A.M. Distributing Company and G.H. Berlin-Windward last December.
NOCO, headquartered in Tonawanda, New York, supplies high-quality lubricant products to a broad range of industries in the northeast region of the US as well as parts of Ontario and southern Quebec in Canada. “We will be able to leverage existing infrastructure, add additional talent and solidify our leading market position,” commented Markus Klähn, CEO of Brenntag North America.
Gerace added that the deal gives Brenntag entry into the Canadian lubricants market, where it will gain an established distribution network operating in a major industrial region. Financial details of the acquisition, which does not affect NOCO’s energy distribution or retail businesses, were not revealed. The business is expected to generate total sales of around $209 million in 2016.
