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.
Brenntag is to buy US-based Storm Chaser Holding, also known as JM Swank, a leading distributor of food ingredients, in its third acquisition so far this year. The transaction is expected to close during the third quarter of 2021.
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.
Brenntag has strengthened its water treatment business in the UK with the acquisition of ICL Packed, its second purchase this year so far. Financial terms of the deal, which was signed and closed on the same day, were not disclosed.
In a move to expand its food and nutrition business in China, Germany-based international distributor Brenntag said it plans to acquire the majority of specialty ingredients distributor Zhongbai Xingye. The activities will become part of the global division of Brenntag Specialties. The deal values the business at about €90 million.
German-headquartered multinational chemical distributor Brenntag has agreed to buy Canada’s Alpha Chemical for an undisclosed sum.
Brenntag has announced plans to cut its workforce by approximately 1,300 and close about 100 sites across all regions as it implements its transformation program – named Project Brenntag – to increase focus, reduce complexity and strengthen its leading global market position.
Brenntag has agreed to buy Italian activated carbon company Comelt and its subsidiary Aquadepur for an undisclosed sum.
Following an analysis of its internal structures and processes earlier this year, Brenntag will establish a new operating model with effect from January 2021, launching two global divisions – Brenntag Essentials and Brenntag Specialties.
Brenntag has bought the operating assets of US-based Suffolk Solutions’ caustic soda distribution business, gaining access to a bulk terminal and rail transloading facility in the Virginia port city of the same name. The acquired business had sales of about $15.6 million in the fiscal year ending Apr. 30, 2020.
Leading chemicals distributor Brenntag has agreed to buy Oils ‘R US, a Thai distributor of lubricants for automotive, commercial vehicle, industrial and marine applications. The transaction is expected to complete in the second half of 2020.
The chemical industry is on the threshold of a new era – the age of circularity. We asked industry experts to share their opinions on this transformational topic.
Digitalization is a very important topic not only in the chemical industry as a whole, but also in chemical distribution.
