Brenntag to buy Canada Colors and Chemicals
In its third acquisition so far this year, German distribution giant Brenntag has signed an agreement with Canada Colors and Chemicals (CCC) to acquire the Toronto company’s chemicals distribution business. Financial terms were not disclosed.
“With the acquisition of CCC, Brenntag strengthens its focus and specialties capabilities in both life science and material science. CCC’s broad positioning and extensive product and service portfolio perfectly complement Brenntag’s offer to our customers and suppliers,” said Brenntag Group’s CEO, Steven Holland.
Guy Carr-Harris, chairman and CEO of CCC, added that the combination of Brenntag’s global reach and the Canadian company’s technical capabilities provides a compelling platform for its customers and suppliers.
CCC operates several facilities across Canada that can store, blend and package industrial and specialty chemicals and products, serving industries including life sciences, water treatment, coatings, construction, energy and mining. Its life science business has an ingredients application laboratory and offers several of its own formulations.
Brenntag said CCC’s blending capabilities and formulation expertise in the oil & gas business opens “interesting” synergistic business opportunities with the German group’s oil & gas operations in Canada.
CCC generated sales of about EUR 140 million in fiscal 2017. The transaction is expected to close during the coming weeks, subject to the usual conditions.
In May, Brenntag completed its acquisition of Portugal’s Quimitecnica and gained a 65% stake in India’s Raj Petro Specialties. The Germany-based distributor will take the remaining 35% stake in the Indian petroleum products distributor after a period of five years.