December 12 2015, David R Brown
Brenntag strengthens specialty chemicals business in Africa by acquiring polymers distributor Plastichem
Brenntag has signed a definitive agreement to purchase 100% of the shares of the specialty chemicals distributor Plastichem Pty Ltd., South Africa. The acquisition gives Brenntag a strong market position in the plastic and rubber industry in South Afica and in neighbouring countries.
This acquisition is in line with Brenntag's strategy to build a chemical distribution platform in key industries in the Middle East and Africa region
Karsten Beckmann, CEO Brenntag Europe Middle East and Africa (EMEA)
Karsten Beckmann, Member of the Management Board of Brenntag Group and CEO Brenntag Europe Middle East and Africa (EMEA): “This acquisition is an excellent opportunity for us and is completely in line with Brenntag's strategy to build a chemical distribution platform in key industries in the Middle East and Africa region. With Plastichem, we are diversifying our current product portfolio in South Africa towards an increased offer of specialty chemicals.”
Plastichem, based in Kempton Park, South Africa, is a specialty distributor of high performance polymers for plastics and rubber, enjoying a high reputation in the South African automotive market as well as in the packaging, electronics and engineering industries. The company focuses further on entire supply chain solutions and services to customers in South Africa and Sub Saharan Africa.
Carl Blomme, Regional President Brenntag Europe West & MEA: “With the acquisition we build up market expertise in the continuously growing plastics and rubber industries in the region. This will help us to further expand our business in South Africa with our existing suppliers as well as cover the Sub-Sahara region.”
Plastichem is expected to achieve sales of approximately 26.9 million EUR in the financial year 2016. Closing of the transaction is expected in the course of the next weeks, subject to contractually agreed closing conditions.
About Brenntag
Headquartered in Mülheim an der Ruhr, Germany, Brenntag is the market leader in chemical distribution and operates a global network of over 490 locations in more than 72 countries. In 2014, the company, which has a global workforce of more than 13,000, generated sales of EUR 10.0 billion (USD 13.3 billion). With over 10,000 products and a world-class supplier base, Brenntag offers one-stop-shop solutions to around 170,000 customers. This includes 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
Further Information
Visit: http://www.brenntag.com