Brenntag AG / Mergers & Acquisitions
05.07.2010 07:53
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- Brenntag strengthens strategic position and local presence in the growth
region Asia Pacific with acquisition of expected EUR 220 million sales in
2010
- Established network of 27 locations in nine countries, operated by nearly
800 employees, complements Brenntag's existing distribution network
- Purchase price is EUR 160 million on a cash and debt free basis
Brenntag, global market leader in chemical distribution, 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 major 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. In addition the high level of benefits between Brenntag and EAC
Industrial Ingredients is expected to further enhance both customer service
and access to world class suppliers. With extensive sales and marketing
resources EAC Industrial Ingredients represents in-depth knowledge of local
markets and relationships to more than 8,000 customers. 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.
Henri Nejade, President of Brenntag Asia Pacific says: 'We are delighted to
acquire EAC Industrial Ingredients because it perfectly meets our
requirements to further grow in this region. The acquisition will support
our ability to better serve local demands in these fast-growing countries.
I am convinced we will continue the Brenntag success story in Asia Pacific
which is a major growth area for the global economy and consequently for
Brenntag, too.'
Brenntag has already significant assets in Asia Pacific with 17 sites in 11
countries and the acquisition of EAC will increase the number of personnel
in the region to about 1,000.
The Closing of the deal is expected in the course of July. EAC Industrial
Ingredients' existing team will continue their successful 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.
Press contact:
Hubertus Spethmann
Brenntag AG
Corporate Communications
Telephone: +49 (208) 7828-7701
Fax: +49 (208) 7828-7220
E-Mail: hubertus.spethmann@brenntag.de
http://www.brenntag.com
Investor contact:
Georg Müller, Stefanie Steiner
Brenntag AG
Investor Relations
Telephone: +49 (208) 7828-7653
Fax: +49 (208) 7828-7755
E-Mail: IR@brenntag.de
http://www.brenntag.com
05.07.2010 07:53 Ad hoc announcement, Financial News and Media Release distributed by DGAP. Medienarchiv at |[![CDATA[|[a href="http://www.dgap-medientreff.de"|]www.dgap-medientreff.de|[/a|]]]|] and |[![CDATA[|[a href="http://www.dgap.de"|]www.dgap.de|[/a|]]]|]
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Language: English
Company: Brenntag AG
Stinnes Platz 1
45472 Mülheim an der Ruhr
Deutschland
Phone: +49 (0) 208 7828 - 0
Fax: +49 (0) 208 7828 - 698
E-mail: info@brenntag.de
Internet: www.brenntag.com
ISIN: DE000A1DAHH0
WKN: A1DAHH
Indices: MDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, Hannover, München, Hamburg, Stuttgart
End of News DGAP News-Service
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DGAP-News: Brenntag AG: Brenntag significantly expands its market presence in Asia Pacific with acquisition of EAC Industrial Ingredients Ltd. A/S
| Source: EQS Group AG