Further Expansion of the Performance Materials Business Unit
Speciality chemicals distributor DKSH AG (Zurich, Switzerland) has announced the acquisition of a majority share in specialty chemicals distributor Shanghai Right Base Chemicals Co. Ltd. [“RBC”] (Shanghai, China) from majority shareholder and General Manager Windy Wang and her co-investors for an undisclosed sum. The initial transaction involves the transfer of a 70% stake, with the remaining shares to be bought in five years.
Founded in 1994, RBC and its 60 employees cover the Eastern, Central, and South-Western regions of the Chinese market. The company primarily distributes Additives, Resins, and Colorants for Paints & Coating and Inks. With net sales of approx. EUR 23 mn (ca. CHF 25 mn at 1.00 CHF = 7.00 CNY) RBC has what DKSH describes as a “sound profitability and return on capital”. The investment is expected to be immediately earnings-accretive.
Closing of the transaction is expected for Q4-2021. It is subject to certain customary closing conditions, DKSH said in the announcement. No further financial details were disclosed on the transaction.
Source: DKSH press release
HGE / DCG – 03.11.2021
Specialties Distribution Group Azelis strengthens its Position in the Personal Care Market in China
Specialty chemicals and food ingredients distributor Azelis S.A. (Munsbach, Luxembourg) has announced that it has signed an agreement to acquire the Greater China operations of Ingredients Plus Pty. Ltd. (Rydalmere (Sydney), NSW – Australia), a distributor of ingredients for the Personal Care industry.
The transaction comprises 100% of the shares of Ingredients Plus Hong Kong and the fully owned subsidiaries in Shanghai and Guangzhou, where in total over 40 people are employed. All employees will become part of the Azelis team, remaining in their respective position to support the business, Azelis said in the announcement.
No financial information was disclosed on the transaction, which is expected to be completed by end of August, according to the Azelis press release.
Source: Azelis press release
HGE – DCG / 16.08.2021
Expansion in Food Ingredients to augment Product Offering in China
Global chemical distributor Brenntag AG (Essen, Germany) announced that the group has signed an agreement to acquire Zhongbai Xingye Food Technology (Beijing) Co., Ltd [“Zhongbai Xingye”], (Beijing, China), a company which is dedicated to the distribution of a wide variety of Specialty Food Ingredients, including Dairy Products and Proteins, in a two step process.
The investment comprises an initial 67% stake, and a second tranche of the remaining 33%, which will be acquired by Brenntag by end of 2024. The transaction is valued at an Enterprise Value of about EUR 90 mn.
According to the announcement, the acquired business generated sales of approx. EUR 146 mn over the twelve-months period up to June 2020. Closing of the first tranche is subject to certain contractual conditions and regulatory approvals and is expected to be completed in the first half of 2021. The business will be part of the groups’s global division Brenntag Specialties.
Source: Brenntag press release
HGE – DCG / 29.01.2021
U.S. based Distributor expands Footprint in China with Asset Deal for Silicones Distribution
Global chemicals and ingredients distributor Univar Solutions, Inc. (Downers Grove, IL – United States) recently announced that its wholly owned subsidiary, Univar Solutions China Co. Ltd., has reached an agreement with Zhuhai Techi Chem Silicone Industry Corporation [“Techi Chem“] (Zhuhai, Guangdong Province – China) to acquire the business to distribute innovative specialty silicone solutions used primarily for the Coatings, Adhesives, Sealants, and Elastomers (“CASE” ) market for an undisclosed amount.
The entity, which was established in 2001, has in-depth application know-how and an extensive logistics network across China. The transaction is expected to close in mid-December. No financial details were disclosed.
Source: Univar press release
HGE – DCG / 07.12.2020
Dutch Distribution Group enhances Pharma Industry Coverage in China
Specialty chemicals and food ingredients distributor IMCD N.V. (Rotterdam, The Netherlands) announced that it has signed an agreement to acquire the Pharmaceutical Business in China of Develing International Trade (Shanghai) Co. Ltd. (“Develing”) (Shanghai, China) for an undisclosed sum.
Develing International, with head office in Shanghai, is a Dutch sales and distribution company (B2B) of high-quality ingredients for the Food, Pharmaceutical, Chemical, and Feed industry in China and Vietnam. Its holding office is located in Bunschoten-Spakenburg, The Netherlands. The group has a number of subsidiaries in China, Vietnam and the United States. With a staff of more than 90 employees it realises sales in excess of EUR 120 mn per annum.
The acquired business, representing sales of approx. EUR 10 mn annually, will be integrated into IMCD China’s business unit Pharma. There will be synergies with IMCD’s existing product range, the company said in the announcement.
No financial details were disclosed on this transaction, which is subject to a number of closing conditions being fulfilled.
Source: IMCD press release, Develing website, DistriConsult analysis
HGE – DCG / 15.05.2020
Azelis to enhance Coverage of Personal Care Market in China
Specialty chemicals and food ingredients distributor Azelis S.A. (Munsbach, Luxembourg) has announced yesterday that it has signed an agreement to acquire 100% of the shares of CosBond (Hong Kong, China), a distributor of specialty chemicals and food ingredients for an undisclosed amount.
CosBond was co-founded in 2008 by the late Herman Kwong and serves more than 500 customers with products from international as well as domestic principals. All its employees will become part of the Azelis team. Industries covered include Personal Care, Flavours & Fragrances, Food & Nutrition and Fine Chemicals. Besides Hong Kong, the company has offices and warehouse facilities in Beijing, Guangzhou and Shanghai, Azelis said in the announcement.
No financial information was disclosed on the transaction.
Source: Azelis press release
HGE – DCG / 02.04.2020