News bulletin – chemical distribution

NEWS BULLETIN

CHEMICAL DISTRIBUTION

BRENNTAG PARTNERS IN SAUDI

Brenntag has initiated a partnership with Saudi chemical distributor Al-Azzaz Chemical Co via a 75/25 joint venture. Brenntag is represented in the deal by its UAE-based joint venture Trychem, in which it took a majority stake in 2015.

“Saudi Arabia is by far the largest market in the Middle East and a key market for Brenntag with a very attractive specialties chemical distribution market size and favourable geographic position in the region,” comments Henri Nejade, COO of Brenntag Specialties. “Therefore, I am excited to partner with Al-Azzaz Chemicals. This joint venture will further strengthen our position in the entire Middle East region.”

Fahad Al-Azzaz, CEO of Al-Azzaz Holding, adds: “Partnering with Brenntag’s global presence is a natural next step in our growth journey. We look forward to joining our experience and specialty expertise with Brenntag to deliver a better and tailored service to our customers.”

Al-Azzaz Chemical was founded in 1984 and focuses on the distribution of specialty chemicals in Saudi Arabia, particularly in the food, pharmaceutical, plastics, material science and petrochemicals sector. corporate.brenntag.com/en/

HELM IN THE SOUTH PACIFIC

Helm has entered into a 50/50 joint venture with South Pacific Chemical Industries (SPCI), a privately owned industrial chemical manufacturer, processor and service provider based in Singapore and Malaysia. Within the new partnership, SPCI will contribute its extensive knowledge in the production of inorganic chemicals, while Helm will provide its supply chain know-how and commercial expertise through its global market presence.

“Being not only a distributor, but a trusted producer in Asia through the help of SPCI is a tremendous breakthrough for Helm,” says Stephan Shnabel, Helm’s CEO. “We are very much looking forward to the steps ahead in this venture. The cooperation will strengthen Helm´s portfolio of inorganic chemicals and enables us to build an even stronger positioning in the south-east Asian markets.“ In particular, Helm says, SPCI’s location in Singapore offers it the potential to develop a local distribution hub to help it orchestrate its activities in the region. www.helmag.com

SAFIC ADDS ADDITIVES

Safic-Alcan has acquired European Additives, a German chemical distributor specialising in plastics additives. Established in 2006 by Jürgen Wittler in Köln, European Additives handles anti-oxidants, UV stabilisers and flame retardants, with principals in Asia and Europe. “Jürgen and his team will join Safic-Alcan Deutschland, ensuring continuity for clients and suppliers alike,” says Dr Matthias Pfaffernoschke, managing director of SaficAlcan Deutschland. “We are very much looking forward to have them onboard and continue the success story.”

“The acquisition of European Additives reinforces our activities in Germany and provides further opportunity to grow across our geographies, thanks to their own brand model,” adds Yann Lissillour, CEO of Safic-Alcan Group. www.safic-alcan.com

IMCD GROWS IN CHINA

IMCD has agreed to acquire Welex SA Holdings (China) Ltd and related businesses. Welex is a specialty chemicals distribution company representing a wide range of leading global suppliers. It achieved revenues of some €39m last year and operates from offices in Hong Kong, Beijing, Shanghai, Guangzhou and Qingdao.

“The addition of Welex opens the door for us to diversify our coatings, paint and ink business, enter the fast-growing agrochemical market and develop into the highly valuable speciality

compounding application. In particular, we gain the geographical expansion across China with a strong presence in the southern part,” says Andreas Igerl, managing director of IMCD China. “This is an important milestone for us as we continue our growth momentum with the diversification of our business.”

The transaction is expected to close after 31 October this year. www.imcdgroup.com

GOOD YEAR FOR BIESTERFELD

Biesterfeld has reported strong results for 2021, with revenues of almost €1.4bn compared to €1.0bn in 2020 and EBIT doubling from €43m to €88m. “We can look back on an extraordinary financial year 2021, which was affected by the impacts of the Covid-19 pandemic and a very challenging market environment,” says group CEO Thomas Arnold (picured right).

Biesterfeld anticipates further uncertainties this year, primarily due to the tense geopolitical and global economic situation, with ongoing disruptions in supply chains, limited availabilities and rising costs. Nevertheless, is projects a positive earnings outlook for the year, as Arnold says: “We are watching the situation carefully and we feel confident that in 2022 we will pursue our international growth path on the basis of our application-based technical competence and consulting expertise as well as our trusting and long-established relationships with suppliers and customers. Our acquisition in south-east Asia, in particular, is already having very positive effects.” www.biesterfeld.com

UNDER THE KRAHN UMBRELLA

Krahn Chemie has brought the AmphoChem and Pemco Additives companies, acquired in February 2021, into Krahn Nordics. Chatarina Schneider, managing director of Krahn Nordics, explains: “After the acquisition, we quickly realised together with the local employees that a merger in a new organisation will significantly facilitate the cooperation of both companies, especially with regard to organisational aspects. We are pleased to be able to appear and operate under a uniform name and as part of the internationally positioned chemical distribution company Krahn Chemie, from now on.”

The acquisition of Pemco Additives also brought UK-based Petrico into the fold and this has now been renamed Krahn UK, taking a further step towards a uniform brand presence across Europe. “Petrico has built a trusted reputation in the lubricant market and nothing changes but the name. We will continue to support our valued customers and suppliers whilst promoting the Petrico brand of products throughout wider Krahn regions,“ says Andrew Lamb, managing director of Krahn UK. www.krahn.eu

BARENTZ BANKS CZECH

Barentz has acquired ACE Trade, a Czech distributor of specialty ingredients for the personal care, homecare and industrial markets. ACE Trade, which was founded in 1988, will continue to operate under its own name while certain activities are integrated into the existing Barentz CZ operation.

“ACE Trade CZ has built a very strong position as distributor in the Czech Republic market,” says Pavel Kratochvil, executive vice-president of Barentz CZ. “They have proven their added value, particularly in the personal care and homecare markets, where they have shown great results in developing customized formulations. Their focus on knowledge and entrepreneurship strongly connects with our Barentz business principles and values.” www.barentz.com acetrade.cz

CALDIC EXPANDS PHARMA LINE

Caldic has acquired Active Pharmaceutica, a value-adding pharma distribution company supplying the Brazilian market, with completion of the deal due in the second half of this year.

The acquisition, Caldic says, will help it increase its focus on life science and accelerate growth in Latin America.

“Active Pharmaceutica has established a strong foothold in the Brazilian pharmaceutical sector with a unique value-add proposition that is fully aligned with Caldic’s strategy,” says Rodrigo Gutierrez, CEO of Caldic LATAM. “This acquisition will provide technical knowledge and capabilities to the Caldic organisation in Latin America which, combined with our strong position in pharma in North America and Europe, will further enhance our global position in this strategic market.” www.caldic.com