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