Major Latin American chemical distributor GTM Holdings, majority owned by private equity firm Advent International, has agreed to buy Brazilian rival quantiQ from Braskem, creating the largest, independent chemical distribution platform in the region.

Guatemala-based GTM will pay a total of 550 million reais, or $172 million, for quantiQ, with Advent providing the funds. A sum of 450 million reais will be paid when the sale is finalized with the outstanding monies handed over in the following 12 months.

Founded in 1991 as Ipiranga Química, quantiQ provides commodity, performance and specialty products to more than 5,000 customers spread across 50 different end markets, including cosmetics, pharmaceuticals and nutrition. It is the leading company in the fragmented Brazilian distribution industry where the top 10 players account for only 30% of the market.

Together, GTM and quantiQ will operate 62 distribution centers in 12 countries throughout Latin America, serving more than 15,000 customers across 50-plus different market segments. “The acquisition of quantiQ cements our presence in Brazil and supports our growth strategy of creating a leading regional platform that offers a robust set of services to our customers across Latin America,” said Michael van Marle, chairman and CEO of GTM.

Patrice Etlin, managing partner in Advent’s office in São Paulo, Brazil, added that the combined company will create growth opportunities for its suppliers and expansion into other regions and industrial sub-sectors.

The deal is the third in recent months for GTM, following the purchases of Peruquímicos in Peru last October and High Chem Specialties in Mexico last September. For Brazilian oil giant Petrobras, the sale is part of its ongoing divestment program as it seeks to accelerate its debt reduction and refocus on oil and gas exploration and production.

The transaction remains subject to the usual closing conditions, including approval by the Brazilian competition authority, Conselho Administrativo de Defesa Econômica (CADE).