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Brenntag acquires packaged chemicals distributor in UK

January 27/2021

MOSCOW (MRC) -- Brenntag, the worldwide market leader in chemical and ingredients distribution, says it has acquired ICL Packed Ltd., the packaged chemicals division of Industrial Chemical Ltd (ICL; Grays, UK), a producer and trader of inorganic chemicals, reported Chemweek.

ICL Packed specializes in distributing packaged chemicals for water treatment.

The acquired business generated sales of about ?11 million (USD15 million) in 2020, Brenntag says. It operates hubs at Selby and West Thurrock, UK, which will transfer to Brenntag. Financial terms of the transaction have not been disclosed.

We see a very positive outlook for the water treatment business in the UK over the years to come due to population growth and the increased pressure on environmental quality, says Steven Terwindt, Brenntag board member and COO of the Brenntag Essentials unit.

ICL Packed has a broadly diversified customer base and strong product portfolio, and it complements our current full-service approach to this important market in the UK, says Anthony Gerace, managing director/mergers and acquisitions at Brenntag.

The transaction includes a supply agreement between Brenntag and ICL, a large manufacturer of caustic soda, hydrochloric acid, and iron and aluminum coagulants as well as sodium hypochlorite. ICL has production at Grays, Newcastle, Runcorn, Selby, Thurrock, and Widnes, UK, and will retain these facilities.

ICL says it has sales of GBP125 million/year, including ICL Packed, and will continue to distribute bulk chemicals in the UK by road tanker. This transaction is an important strategic move and will make us stronger and enable us to make the investment required to meet market needs, whilst working closely with Brenntag to ensure that we have the production capacity to serve key elements of their distribution portfolio, the company says. We will be manufacturing some of the bulk chemicals to supply their packed business. They will be investing in dedicated storage and loading capabilities at West Thurrock to support this initiative.

As MRC informed earlier, in April 2020, Brenntag sai it had acquired the operating assets of Suffolk Solutions (Suffolk, Virginia) caustic soda distribution business. Financial terms of the deal have not been disclosed.

We remind that Russia's output of chemical products rose in November 2020 by 9.5% year on year. At the same time, production of basic chemicals increased in the first eleven months of 2020 by 6.6% year on year, according to Rosstat's data. According to the Federal State Statistics Service of the Russian Federation, polymers in primary form accounted for the greatest increase in the January-November 2020 output. November production of polymers in primary form rose to 896,000 tonnes from 852,000 tonnes in October. Overall output of polymers in primary form totalled 9,240,000 tonnes over the stated period, up by 17.1%  year on year.
Author:Margaret Volkova
Tags:propylene, ethylene, petrochemistry, adhesives, Brenntag, UK, Russia, USA.
Category:General News
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