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Brenntag completes acquisitions in APAC

July 27/2021

MOSCOW (MRC) -- Brenntag, the global market leader in chemicals and ingredients distribution, made further important steps in strengthening its business in China with the closing of two acquisitions within its Specialties division, said the company.

On July 23, the acquisition of the first tranche (67%) of food ingredients specialist Zhongbai Xingye has been closed. The closing of the second tranche and thus the full acquisition of Zhongbai Xingye is expected to be completed by the end of 2024. In addition, end of June, Brenntag has completed the acquisition of pigments and additives specialist Wellstar Group by acquiring the remaining 49% of shares of the joint venture.

Henri Nejade, Member of the Management Board of Brenntag SE and COO Brenntag Specialties, comments: Strengthening our Brenntag Specialties division, particularly in China, as well as in the Asia Pacific region in general, is a central pillar of our companys M&A strategy. I am particularly delighted that we stuck exactly to our timing in both cases and were able to successfully close the important acquisition steps in the dynamic and growing Asian markets as planned."

The Chinese company Zhongbai Xingye is dedicated to the distribution of a wide range of specialty food ingredients, including dairy products and proteins. The acquisition of the leading player in mainland China is an important step for Brenntag to become a full-line distributor of food ingredients in the Asian market. Closing of the second tranche is expected at the end of 2024.

The Wellstar Group is headquartered in Hongkong and operates three subsidiaries in Mainland China located in Shenzhen, Guangzhou, and Shanghai. Since Brenntag acquired a majority stake of 51% with a first tranche in August 2017, the business was operated and successfully developed as a joint venture servicing a broad range of industries. With the closing of the second tranche, the Wellstar Group is 100% owned by Brenntag.

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

As MRC reported earlier, the May production of sodium hydroxide (caustic soda) amounted to 112,000 tonnes  (100% of the main substance) against 101,000 tonnes a month earlier. In the first five months of the year, the total production of caustic soda amounted to 543,000 tonnes, which is 1.4% more than the same indicator of the previous year.


mrcplast.com
Author:Anna Larionova
Tags:liquid caustic soda, kausticheskaya soda, rigid caustic soda, Brenntag, Russia.
Category:General News
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