December 19 2018, David R Brown
Brenntag strengthens footprint in the Canadian Life Science markets by acquiring Pachem Distribution
Brenntag (WKN A1DAHH), the global market leader in chemical distribution, has announced the acquisition of Pachem Distribution Inc. The Canadian company, headquartered in Montreal, Quebec, primarily distributes specialty chemicals and ingredients to customers in the Personal Care, Pharmaceutical, and Household, Industrial & Institutional (HI&I) Cleaning markets.
The acquisition is in line with our focus industry growth strategy as it strengthens Brenntag's specialties capabilities in the Life Science segmentsMarkus Klaehn
CEO Brenntag North America
Markus Klaehn, Member of the Board of Management of Brenntag Group and CEO Brenntag North America: “The acquisition is in line with our focus industry growth strategy as it strengthens Brenntag's specialties capabilities in the Life Science segments in Canada. We will see synergies from complimentary product portfolios and leverage via a larger combined customer base. With Pachem, Brenntag Canada also gains access to prime product lines for personal care specialties of key suppliers.”
Pachem maintains a fully equipped application and formulation laboratory for Personal Care offering technical and research and development services for its customers and suppliers. “This technical competence will allow Brenntag to further expand its service offering to the Personal Care, Pharmaceutical and HI&I specialties markets. The combined business is perfectly positioned to expand its customer and supplier base”, says Anthony Gerace, Brenntag Group's Managing Director Mergers & Acquisitions.
The current Pachem President, Paul Caghassi, will lead this business towards future growth and complement its service offering with Brenntag Canada's Life Science Division. Paul Caghassi: &ldquoWe are proud of joining Brenntag, the global market leader in chemical distribution, as it will have sustainable benefits to our suppliers, customers and employees while confirming our leading position in the markets we serve.”
The acquired business is expected to generate sales of EUR 13 million in the financial year 2018.
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 73 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