July 3 2018, David R Brown
Brenntag strengthens its footprint in Canada by acquiring the chemicals distribution business of Canada Colors and Chemicals
Brenntag (WKN A1DAHH), a global leader in chemical distribution, has signed an agreement with Canada Colors and Chemicals Ltd. to acquire the company's chemicals distribution business ('CCC'). Headquartered in Toronto, CCC offers a full-line portfolio with operations in the main industrial areas across all of Canada. CCC serves a highly diversified customer base in industries such as Life Sciences, Water Treatment, Coatings, Construction, Energy and Mining.
CCC's broad positioning and extensive product and service portfolio perfectly complement Brenntag's offer to our customers and suppliersSteven Holland
CEO Brenntag Group
Steven Holland, CEO Brenntag Group: “With the acquisition of CCC, Brenntag strengthens its focus and specialties capabilities in both Life Science and Material Science. CCC's broad positioning and extensive product and service portfolio perfectly complement Brenntag's offer to our customers and suppliers.”
CCC maintains well-invested, scalable and flexible facilities across Canada to store, blend and package industrial and specialty chemicals and products. Its Life Science offer includes a state-of-the-art ingredients application lab, several own formulations and a highly qualified technical staff. CCC's blending capabilities and formulation expertise in the Oil & Gas business opens interesting synergetic business opportunities with Brenntag Canada's Oil & Gas operations. In addition, the company's own truck fleet will extend Brenntag's value-added service offering.
Guy Carr-Harris, Chairman and CEO of Canada Colors and Chemicals Ltd.: “The sale of our chemicals distribution business to Brenntag is an exciting opportunity for our employees and stakeholders to join forces with one of the world's leading international chemical distribution companies. The combination of Brenntag's global reach and our technical capabilities provide a compelling platform for our customers and suppliers.”
The business generated total sales of approximately 140 million EUR in the financial year 2017. Gross profit 2017 amounted to around 25 million EUR. The business is valued at an Enterprise Value of around 86 million EUR. Closing of the transaction is expected within the course of the next weeks, subject to contractually agreed closing conditions.
Brenntag, the global market leader in chemical distribution, covers all major markets with its extensive product and service portfolio. Headquartered in Essen, Germany, the company operates a global network with more than 530 locations in 74 countries. In 2017, the company, which has a global workforce of more than 15,000 employees, generated sales of EUR 11.7 billion. (USD 13.3 billion). Brenntag connects chemical manufacturers and chemical users. The company supports its customers and suppliers with tailormade distribution solutions for industrial and specialty chemicals. With over 10,000 products and a world-class supplier base, Brenntag offers one-stopshop solutions to around 185,000 customers. This includes specific application technology, an extensive technical support and value-added services such as just-in-time delivery, product mixing, formulation, repackaging, inventory management and drum return handling.
Source(s): Brenntag Press Release