Brenntag to acquire South African specialty distributor Warren Chem

June 30 2016, David R Brown

Brenntag is strengthening its presence in the South African chemical distribution market by signing an agreement to acquire Warren Chem Pty Ltd. The Cape Town based company is a leading specialty chemicals distributor focusing on the Pharma and Food industries in South Africa.

Brenntag's strategy is to become a leader in the chemical distribution market in South Africa, the largest market in the African region

Karsten Beckmann
CEO Brenntag Europe Middle East and Africa

Karsten Beckmann, Member of the Board of Management of the Brenntag Group and CEO Brenntag Europe Middle East and Africa: “Brenntag's strategy is to become a leader in the chemical distribution market in South Africa, the largest market in the African region. The acquisition of Warren Chem perfectly matches this strategy as it complements our existing business in the country. Together with our subsidiary Multisol and the specialty distributors Lionheart as well as Plastichem, both acquired in 2015, Brenntag now holds a strong foothold in the Food, Pharma, Plastic & Rubber and Lubricant industries in South Africa. This is an excellent platform for further growth in the country and beyond.”

Warren Chem is a well established chemical distributor mainly servicing the Pharmaceutical and Nutraceutical as well as the Food & Beverage industries and complements Brenntag's existing product portfolio. Its broad supplier basis includes major international companies. Warren Chem maintains modern warehouse and distribution facilities in Cape Town and Johannesburg, and is well positioned to meet the increasingly strict national and international regulatory requirements of the Pharma and Nutrition market.

Anthony Gerace, Brenntag Group’s Managing Director Mergers & Acquisitions: “The complementary product and supplier portfolio of Warren Chem and Lionheart form a Life Science business unit in South Africa that will be competitively positioned in both the Food and the Pharma industries, which are strategic focus sectors for Brenntag in Southern Africa. The Life Science sector is attractive as it has high growth potential. South African companies are growing in South Africa and expanding into the Sub Saharan region due to the increasing demand from the emerging middle class. This environment offers great potential for Brenntag to further grow its business.”

The acquired business generated sales of EUR 26.6 million in the financial year 2015. The transaction will be closed in the course of the next months.

About Brenntag
Headquartered in Mülheim an der Ruhr, Germany, Brenntag is the market leader in chemical distribution and operates a global network of over 530 locations in more than 74 countries. In 2015, the company, which has a global workforce of more than 14,000, generated sales of EUR 10.3 billion (USD 11.5 billion). With over 10,000 products and a world-class supplier base, Brenntag offers one-stop-shop solutions to around 180,000 customers. These include specific application technology, extensive technical support and value-added services such as just-in-time delivery, product mixing, formulation, repackaging, inventory management and drum return handling.

Source(s): Brenntag Press Release

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