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