Brenntag closes acquisition of first tranche of Zhong Yung (International) Chemical Ltd.

22-Aug-2011 - Germany

Brenntag closed the acquisition of the first 51% of Zhong Yung (International) Chemical Ltd., a chemical distributor focused on the distribution of solvents with an established commercial and logistical infrastructure in the key economic regions in China. Thereby Brenntag gains market access to China, the world’s fastest-growing chemical market. Brenntag acquires over EUR 200 million of sales expected for 2011. Having signed the purchase agreement on June 09, 2011, the transaction has formally been closed within 10 weeks. The acquisition will be executed in two steps. Acquisition of the remaining stake is scheduled for 2016.

With this strategically important transaction Brenntag strengthens its growth strategy in the Asia-Pacific region. Brenntag thereby demonstrates full commitment to build a solid distribution network in China. Zhong Yung is a major chemical solvent distributor with about 2,000 customers, more than 100 suppliers and an excellent infrastructure including laboratories, blending and storage capabilities.

Steven Holland, Brenntag CEO: “We intend to use the strong national sales organization covering North, East and South of China to expand the product lines we distribute. We are now the only global chemical distributor who can offer its customers and suppliers an established network in all major economies of Asia Pacific. This will open up opportunities for organic growth. We are continuing to look for further acquisition opportunities to support our growth in Asia Pacific.”

Fernando Ramirez, Brenntag China Managing Director, says about the target selection process: “The decision of acquiring Zhong Yung was part of a structured and time consuming process that took us around four years. Brenntag understands the strategic importance of having a solid partner in such a challenging environment. We are fundamentally convinced that Zhong Yung represents the best acquisition opportunity a global chemical distributor can have in China.”

https://www.chemeurope.com/en/news/134029/brenntag-closes-acquisition-of-first-tranche-of-zhong-yung-international-chemical-ltd.html