July 29 2019, David R Brown
Brenntag acquires outstanding shares in South African JV, Crest Chemicals
Brenntag (WKN A1DAHH), the global market leader in chemical distribution, has announced the acquisition of the remaining 50% of the shares in Crest Chemicals Proprietary Limited ('Crest'), South Africa, from the AECI Limited ('AECI', JSE AFE) Group of companies. Crest has been a 50:50 joint venture between Brenntag and AECI since 2001.
The full ownership of Crest allows Brenntag to develop the business in the desired direction and to fully leverage its growth potentialKarsten 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: “The full ownership of Crest allows Brenntag to develop the business in the desired direction and to fully leverage its growth potential. Combining Crest with Brenntag South Africa will support us in providing a rather complete product and industry sector offering.”
Crest, based in Midrand/Johannesburg, is a distributor and reseller of chemicals to a broad range of South African industries including Industrial, Paint and Coatings, Food, as well as Mining and Water. In addition to products, support and services, the company offers superior technical solutions and formulation expertise to its customers.
Anthony Gerace, Brenntag Group's Managing Director Mergers & Acquisitions: “We expect to realize cost synergies and convert cross selling opportunities by combining Crest and Brenntag South Africa since both companies have complementary product lines. In addition, Brenntag will benefit from Crest's mixing & blending capabilities, a service that is increasingly requested by customers.”
The acquired business generated sales of approximately EUR 95 million in the financial year ended 31 December 2018. Closing of the transaction is subject to certain conditions precedent. It is expected to be finalised before the end of 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 580 locations in 76 countries and a workforce of more than 16,600 employees. In 2018, the company generated sales of EUR 12.6 billion (USD 14.8 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 more than 10,000 products and a worldclass supplier base, Brenntag offers one-stop-shop solutions to around 195,000 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. Long-standing experience and local excellence in the individual countries characterize the global market leader for chemical distribution.
Source(s): Brenntag Press Release