Brenntag significantly expands its market presence in Asia Pacific
Brenntag further expands its market position in the growth area Asia Pacific by acquiring 100% of the shares of EAC Industrial Ingredients Ltd. A/S, a sizeable provider of chemical distribution solutions in South and South East Asia. Selling company is Copenhagen based The East Asiatic Company Ltd. A/S, a stock-listed Danish company. The purchase price is EUR 160 million on a cash and debt free basis. With the acquisition, Brenntag gains access to an established distribution network active in nine countries with exceptional growth potential.
With this acquisition in South and South East Asia Brenntag reinforces its growth strategy in the Asia Pacific region. EAC Industrial Ingredients holds an important market share and covers with subsidiaries markets in nine countries with local presences in Thailand, Vietnam, Indonesia, Philippines, Malaysia, Singapore, Cambodia, India and Bangladesh. For 2010 Brenntag expects sales of about EUR 220 million for EAC Industrial Ingredients.
“The acquisition of EAC Industrial Ingredients is a major step in the execution of Brenntag's growth strategy. We expand our existing presence in the growing markets of Asia Pacific, add significant market share and improve our market position in focused industries like Food & Beverage, Coatings, Personal Care and Pharma”, says Stephen Clark, CEO of Brenntag. “This strategic milestone develops our market position from a foothold in Asia to an established operational network, supporting our continued growth path in the region.”
The acquisition is a strategic investment for Brenntag. In the Asia Pacific region growing demand is expected in particular for sectors like Food, Cosmetics, Pharma and Coatings. Customers from these sectors are important for Brenntag. The knowledge of regional markets and their respective individual requirements will offer additional business opportunities and provides for synergies with existing Brenntag suppliers and customers. With the acquisition of EAC Industrial Ingredients Brenntag is one of the few companies operating in the whole region.
The Closing of the deal is expected in the course of July. EAC Industrial Ingredients’ existing team will continue their work under the Brenntag brand. Brenntag expects significant benefits from the combination of the two operations. No merger control notification was necessary with regard to the acquisition.
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