29-Jul-2021 - Brenntag AG

Brenntag strengthens its Specialties business in Asia Pacific by closing two acquisitions

Closing of two acquisitions

Brenntag made further important steps in strengthening its business in China with the closing of two acquisitions within its Specialties division. On July 23, the acquisition of the first tranche (67%) of food ingredients specialist Zhongbai Xingye has been closed. The closing of the second tranche and thus the full acquisition of Zhongbai Xingye is expected to be completed by the end of 2024. In addition, end of June, Brenntag has completed the acquisition of pigments and additives specialist Wellstar Group by acquiring the remaining 49% of shares of the joint venture.

Henri Nejade, Member of the Management Board of Brenntag SE and COO Brenntag Specialties, comments: “Strengthening our Brenntag Specialties division, particularly in China, as well as in the Asia Pacific region in general, is a central pillar of our company’s M&A strategy. I am particularly delighted that we stuck exactly to our timing in both cases and were able to successfully close the important acquisition steps in the dynamic and growing Asian markets as planned.”

The Chinese company Zhongbai Xingye is dedicated to the distribution of a wide range of specialty food ingredients, including dairy products and proteins. The acquisition of the leading player in mainland China is an important step for Brenntag to become a full-line distributor of food ingredients in the Asian market. Closing of the second tranche is expected at the end of 2024.

The Wellstar Group is headquartered in Hongkong and operates three subsidiaries in Mainland China located in Shenzhen, Guangzhou, and Shanghai. Since Brenntag acquired a majority stake of 51% with a first tranche in August 2017, the business was operated and successfully developed as a joint venture servicing a broad range of industries. With the closing of the second tranche, the Wellstar Group is 100% owned by Brenntag.

Facts, background information, dossiers
  • Brenntag
  • China
  • acquisitions
More about Brenntag
  • News

    Brenntag achieved excellent results in an exceptional market environment in the second quarter 2021

    Christian Kohlpaintner, Chief Executive Officer of Brenntag SE, said: “We achieved excellent results in the second quarter and are highly satisfied with the performance of our two global divisions Brenntag Essentials and Brenntag Specialties. Brenntag Specialties performed particularly well ... more

    Brenntag acquires North American acetone specialist Matrix Chemical

    Brenntag acquires all operating assets and business of Matrix Chemical, LLC (“Matrix”). The company is a solvents distributor and the largest distributor of acetone in North America with sales of around USD 200 million year to date in 2021. Steven Terwindt, Member of the Management Board of ... more

    Brenntag achieves very strong results in first quarter 2021

    Brenntag reports very strong results in the first quarter 2021 by prudently navigating through fast changing market conditions. The two global divisions Brenntag Essentials and Brenntag Specialties, had a successful start and both contributed strong results. Christian Kohlpaintner, Chief Ex ... more

  • Companies

    Brenntag Nederland B.V.

    We are committed to excellence in every aspect of our business to remain on top. To that end, we conduct all matters with the utmost degree of integrity and responsibility. We would not be the world’s leading chemical distributor if we did not make a meaningful impact to our business partne ... more

    Brenntag S.p.A.

    The Brenntag Group is the leading chemical distributor in Italy. In 2005 Brenntag Italy generated 355 million euro of turnover. Our scope is to offer a high-quality service on the basis of a strong network of sites covering the whole country. We are committed to applying a high level of ... more

    Brenntag Química, S.A.

    We are committed to excellence in every aspect of our business to remain on top. To that end, we conduct all matters with the utmost degree of integrity and responsibility. We would not be the world’s leading chemical distributor if we did not make a meaningful impact to our business partne ... more