November 1 2021, David R Brown
DKSH Performance Materials Business Unit expands in China through the acquisition of Right Base Chemicals
DKSH has agreed to acquire a majority stake in a joint-venture with Chinese specialty chemicals distributor Right Base Chemicals (RBC). The joint-venture is in line with DKSH's strategy to solidify its leading position in the distribution of specialty chemicals and ingredients in Asia Pacific. Founded in 1992 and based in Shanghai, RBC primarily distributes additives, resins, and colorants for coating and ink applications.
This joint-venture will further strengthen our market coverage of the coatings industry
Thomas Sul and Natale Capri
Co-Heads Business Unit Performance Materials at DKSH
Thomas Sul and Natale Capri, Co-Heads Business Unit Performance Materials at DKSH, jointly commented: “China is by far the largest market for chemical distribution in APAC. By acquiring RBC, we are actively driving forward the market consolidation of the specialty chemicals industry. This joint-venture will further strengthen our market coverage of the coatings industry and will provide an extended platform for leveraging our key suppliers portfolio for further industries in China. We are glad to welcome all of RBC's employees and look forward to growing with them together.”
RBC generates net sales of around CHF 25 million and has 60 employees covering the Eastern, Central, and South-Western regions of the Chinese market. Initially, DKSH will acquire a 70% stake in the joint-venture with RBC and the remaining 30% in five years. The joint-venture is expected to be immediately earnings-accretive. Closing of the transaction is expected for the fourth quarter of 2021 and is subject to certain conditions.
Windy Wang, General Manager and majority owner of RBS, added: “For close to 30 years, we have successfully served our customers in the Chinese markets. We look forward to continuing our successful journey with DKSH, by combining their international expertise and our local experience and to generate more value for our business partners.”
About DKSH
At DKSH, our purpose is to enrich people’s lives. For more than 150 years, we have been delivering growth for companies in Asia and beyond across our Business Units Healthcare, Consumer Goods, Performance Materials and Technology. As a leading Market Expansion Services provider, we offer sourcing, market insights, marketing and sales, eCommerce, distribution and logistics as well as after-sales services. Listed on the SIX Swiss Exchange, DKSH operates in 36 markets with 32,450 specialists, generating net sales of CHF 10.7Bn in 2020.
The DKSH Business Unit Performance Materials distributes specialty chemicals and ingredients for food, pharmaceutical, personal care and various industrial applications. With 48 innovation centers and regulatory support worldwide, we create cutting-edge formulations that comply with local regulations. With around 1,260 specialists, the Business Unit generated net sales of CHF 1.1Bn in 2020.
Source(s): DKSH Press Release
Further Information
Visit: https://www.dksh.com