Azelis has made two acquisitions this month to date, both in South Korea. The most recent agreement, announced on Jul. 14, is the proposed takeover of Seoul-headquartered Coseal, which specializes in the distribution, repackaging and blending of agricultural/horticultural surfactants.
In the drive to reach growth objectives, or to maintain and enhance “critical mass”, mergers & acquisitions (M&A) has been a theme for the chemical distribution industry for years. The industry leaders (by size and geographic reach) were all built through a series of such transactions. The practice is further trickling down to the smaller and mid-sized company layer of the sector, and more distributors espouse external growth options.
How to Build or Maintain Critical Mass in the Chemical Distribution Industry
Analysis of the mergers & acquisitions activity in chemical distribution under the impression of the pandemic situation and how it might develop going forward.
Azelis has entered into an agreement to buy US-based Vigon International, expanding its footprint in the life sciences sector. Financial details of the transaction expected to close in the second quarter of 2021 were not disclosed.
Azelis has agreed to buy the distribution assets of Indian firms Spectrum Chemicals and Nortons Exim. The transaction is expected to close in the coming two weeks. Financial terms were not disclosed.
Continuing its acquisition spree of recent weeks, Azelis is to take over Italy’s Came Chemical Mineral and Engineering for an undisclosed sum. Headquartered in Milan, Came specializes in distributing chemicals for friction and sintering applications, the coatings, adhesives, sealants and elastomers (CASE) segment and cosmetics.
Azelis has agreed to buy majority shareholdings in Asia Primera Kimika Inc. (APKI) and Phil-Asiatic Supply & Services Inc. (PSSI), entering the Philippine market and significantly strengthening its footprint in Southeast Asia.
In its first deal of 2021, Azelis has purchased a majority shareholding in Vietnamese companies MKVN Chemicals and Viet Chemicals Trading and Service through their parent company Bellekimia Singapore. Financial terms were not disclosed.
Azelis has entered into an agreement to buy CW Pacific in Australia, including Elle Bee Exports, CW Pacific Specialties and EB1. Financial terms of the deal, which is expected to close within the next two months, were not disclosed.
Azelis has entered into an agreement to buy Bronson and Jacobs Hong Kong and its wholly owned subsidiary in Shanghai, China, from owner Ixom, an Australian chemicals and water treatment distributor. Financial terms were not disclosed.
Azelis has agreed to buy Orokia Israel for an undisclosed sum. The purchase will give the Belgian distributor entry to the “highly attractive” Israeli specialty chemicals market. Part of global investment group EQT, Azelis said the takeover of Orokia is consistent with its strategy of complementing organic growth with strategic acquisitions.
In another deal to boost its Asian footprint, Azelis has agreed to buy the distribution assets of Indonesia's PT Primaditha Jaya Mandiri.
Azelis is strengthening its position in China with an agreement to buy CosBond, a specialty chemicals and food ingredients distributor headquartered in Hong Kong. The acquisition is expected to close within the next three months. Financial terms were not disclosed.
Azelis is to acquire S. Zhaveri Pharmakem, expanding its presence in India and gaining a significant footprint in the country’s fast-growing pharmaceutical market. Headquartered in Mumbai, S. Zhaveri serves both domestic and international principal suppliers to India’s pharmaceutical market.
Azelis is entering the Latin American market following an agreement to buy Megafarma, a Mexican specialty distributor for the pharma, food and veterinary industries. Financial terms of the deal, which is expected to close within the next month, were not disclosed.
In its fifth acquisition so far this year, Azelis has agreed to buy Ekin Kimya, a leading Turkish specialty chemicals distributor active in the pharmaceuticals, food ingredients and laboratory chemicals segments. Financial terms of the deal, which is expected to close in the next three months, were not disclosed.
Azelis has signed an agreement to acquire Orkila, a leading specialty chemicals and food ingredients distributor operating in Africa and the Middle East.
