Brenntag Acquires in South Africa and Taiwan
Just days after sealing two deals in Africa, Brenntag is acquiring two more companies – another in South Africa and one in Taiwan.
Headquartered in Johannesburg, Chemgrit Cosmetics is an independent specialty chemicals distributor with a focus on the personal care and cleaning markets. The company, which generated sales of about €5 million in the 2018 fiscal year, has three warehouses in Johannesburg, Durban and Cape Town, as well as a laboratory providing services such as mixing, refilling, redistribution & delivery, formulating and testing of materials and products, along with other technical support.
“With the acquisition of Chemgrit Cosmetics we expand the industry segment and scope for Brenntag South Africa in specialties,” said Karsten Beckmann, member of Brenntag Group’s management board and CEO Brenntag Europe, Middle East and Africa. “The company’s cosmetics focus perfectly complements our existing national food and pharma business and supports our ambition to achieve a strong position and comprehensive offering in South Africa.”
Anthony Gerace, Brenntag Group’s managing director mergers & acquisitions, added that Chemgrit has a strong foothold in personal care, which is one of the fastest-growing market segments in South Africa and sub-Saharan Africa. “Brenntag can use its existing structure in East and West Africa as well as Maghreb to roll out the cosmetics business line in the region,” he said.
The transaction remains subject to the usual conditions but is expected to close during the third quarter of this year.
In Taiwan, the company has bought Neuto Chemical, a Taipei-based distributor focused on supplying specialty and industry chemical products to industries including electronics, coatings, textile and metal working.
The deal, which is subject to customary closing conditions and regulatory approvals, is expected to complete in the first half of 2020.
Henri Nejade, member of Brenntag’s management board and CEO Brenntag Asia Pacific, said the acquisition strengthens the company’s position in Taiwan with Neuto being a complementary fit to Brenntag Taiwan’s business, which is centered on health and nutrition.
Gerace added: “There is great potential to generate synergies in the coming years via the leveraging of Brenntag’s suppliers with Neuto’s more than 850 customers and cross selling from Neuto’s product portfolio to Brenntag’s local customers.
Furthermore, we see opportunities to expand the Taiwanese supply base throughout the rest of the Asian Pacific market.”
Neuto generated sales of approximately €26.2 million in the 2018 financial year.