Brenntag buys out South African JV Partner AECI Limited
Global chemical distributor Brenntag AG (Essen, Germany) announced yesterday that it has acquired the remaining 50% of the shares in Crest Chemicals Proprietary Limited (Midrand / Johannesburg, South Africa) from joint venture Partner AECI Limited Group of Companies (Sandton / Johannesburg, South Africa) for a cash consideration of ZAR 390 mn (approx. EUR 25 mn). The company had been a 50:50 joint venture between Brenntag and AECI since 2001.
Crest is a distributor and reseller of chemicals to a broad range of South African industries including Industrial, Paint and Coatings, Food, as well as Mining and Water. In addition to products, support and services, the company offers technical solutions and formulation expertise to its customers, Brenntag said in the announcement.
For 2018, the business reported total sales of approx. EUR 95 mn. Closing of the transaction, expected to be finalised before end of 2019, is subject to a number of conditions precedent, including approval by Sout Africa’s Competition Commission.
Source: Brenntag press release, AECI press release
HGE – DCG / 30.07.2019