September 13 2018, David R Brown
Brenntag strengthens its specialty chemicals platform in Africa by acquiring distributor Desbro Group
Brenntag, the global market leader in chemical distribution, is to acquire the Desbro Group in Kenya, Tanzania, Uganda and the UAE. The company, headquartered in Nairobi, Kenya, is one of the largest and long-standing distributors in East Africa. The Group offers a broad portfolio of commodities and specialty chemicals to diverse strategic customer industries in East Africa and the Middle East such as Plastics, Coatings & Construction, Textile, Water Treatment and increasingly Life Sciences.
The company provides us the needed market expertise, organization and infrastructure to build on our strategy to claim outstanding Africa coverageKarsten Beckmann
Member of the Board of Management of Brenntag Group and CEO Brenntag EMEA
Karsten Beckmann, Member of the Board of Management of Brenntag Group and CEO Brenntag Europe, Middle East and Africa (EMEA): “With Desbro we are acquiring a leading and well respected market player. The company provides us the needed market expertise, organization and infrastructure to build on our strategy to claim outstanding Africa coverage. Combined with Brenntag’s knowhow and existing product and supplier portfolio we will create an overall presence and offering in both Africa and the Middle East.”
Anthony Gerace, Brenntag Group’s Managing Director Mergers & Acquisitions: “East Africa is a sizeable market for chemical distribution to which Brenntag now gains access via this acquisition. We will now be in a position to extend the cooperation with our existing suppliers and attract additional suppliers in the region to support them in growing their customer base. In particular, we see high potential to accelerate the growth of our Material Science business and to improve the market share in Life Sciences.”
Founded in 1954, the Desbro Group is headquartered in Nairobi with offices in Kenya, Tanzania and Uganda which service customers across East and Central Africa, including Ethiopia, South Sudan, Somalia, Rwanda, Burundi and Zambia. The business generated sales of EUR 70 million in the financial year 2017. The transaction is subject to certain contractual closing conditions and regulatory approvals expected to close in the first quarter 2019.
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 and a global workforce of more than 16,000 employees. In 2017, the company 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 tailor-made distribution solutions for industrial and specialty chemicals. With over 10,000 products and a world-class supplier base, Brenntag offers one-stop-shop 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