Brenntag strengthens Asia-Pacific Region with Specialty Chemicals Acquisition in China
Global chemical distributor Brenntag AG (Mülheim an der Ruhr, Germany) announced earlier today it has signed an agreement to acquire 100% of the shares in specialty chemical distributor Wellstar Enterprises (Hong Kong) Company Limited (Hong Kong, Hong Kong) and its 3 Chinese subsidiaries (“Wellstar Group”) in a two-step transaction. Brenntag says it will gain a majority stake of 51% with a first tranche in 2017 and the remaining 49% via the second tranche by 2021. In the period from 2017 to 2021, the business will be operated as a Joint Venture.
Wellstar Group focuses on the distribution of Specialty Pigments, Resins and Additives mainly across China. Besides its headquarter in Hong Kong, the company has three Mainland China subsidiaries, located in Shenzhen, Guangzhou and Shanghai. Industries served include Coatings (where the company also runs an application laboratory), Inks, Plastic and Cosmetics.
In FY2016, the business generated total sales of approximately EUR 27.6 mn. The business is valued at an Enterprise Value of EUR 25.3 mn, Brenntag said. Closing of the first tranche is expected to occur in the course of the next weeks, subject to contractually agreed closing conditions.
Source: Brenntag press release
HGE – DCG / 27.06.2017