January 10 2017, David R Brown
GTM agrees to acquire quantiQ in Brazil, creating a leading chemical distribution platform in Latin America
Braskem, the largest petrochemical company in the Americas, has signed an agreement with GTM do Brasil, a subsidiary of GTM Holdings S.A., through which it undertakes to sell a 100% interest in its subsidiary quantiQ, one of Brazil's largest chemical distributors.
The acquisition of quantiQ cements our presence in Brazil and supports our growth strategy of creating a leading regional platformMichael van Marle
Chairman and CEO of GTM Holdings S.A.
Global private equity investors, Advent International is the controlling shareholder of GTM and is providing equity financing to support the acquisition of quantiQ. The deal is valued at R$550 million, of which R$450 million will be paid at the conclusion of the sale and the remainder in up to 12 months post-close. The transaction is subject to customary closing conditions, including approval by the Brazilian competition authority, Conselho Administrativo de Defesa Econômica (CADE).
This transformative acquisition follows GTM's previous purchases of High Chem Specialties in Mexico and Peruquímicos S.A.C. in Peru. It adds a differentiated and fully developed business line to GTM’s existing chemical distribution businesses in Brazil, creating the largest, independent chemical distribution platform in Latin America. The transaction will further consolidate GTM's leadership position across the Latin American market. Advent International had unsuccessfully tried to buy quantiQ in 2012, when the company was valued at R$1 billion.
“The acquisition of quantiQ cements our presence in Brazil and supports our growth strategy of creating a leading regional platform that offers a robust set of services to our customers across Latin America,” said Michael van Marle, Chairman and CEO of GTM. “Together, GTM and quantiQ provide our customers and suppliers with a new option that integrates the experiences and quality of both companies in a portfolio of innovative products, technologies, services and solutions unique to Latin America.”
Founded in 1991 as Ipiranga Química, quantiQ has a long track record in the chemicals industry and is a well-recognized brand. The company has a complete portfolio in commodities, performance and specialty products, offering value-added services for its 5,000+ clients in 50 different end markets, including cosmetics, pharmaceuticals and nutrition. quantiQ is the leading chemical distributor in Brazil in a fragmented market where the top 10 players have only 30% market share. QuantiQ has four distribution centers and six logistics bases in Brazil and reported sales of R$217 million in the third quarter of 2016, down 6% from the year-ago period. EBITDA was down 64% in the period, to R$8 million.
GTM was founded in 1983 in Guatemala. Together, GTM and quantiQ will operate 62 distribution centers in 12 countries throughout Latin America with operations in Brazil, Mexico, Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica, Panama, Colombia, Ecuador, Peru and Argentina and employ nearly 1000 people. GTM also has service supply offices in the United States, India, and China.
Source(s): GTM press Release