Azelis strengthens presence in Canada with Chemroy acquisition
12 Mar 2019 --- Azelis has acquired Chemroy Canada Holdings Inc. (Chemroy), a Canadian distributor of specialty chemicals and food ingredients, as the company seeks to expand its presence in Canada. The transaction sees Azelis acquire 100 percent of Chemroy, with a wide range of food and nutraceutical ingredients coming to the fore as a result of this acquisition. No financial details of the deal have been disclosed.
The transaction will place Azelis as one of Canada's leading specialty distributors with a strong position in the CASE (coatings, adhesives, construction and ink), food, pharmaceutical, nutraceutical and personal care segments.
Chemroy is complementary to Azelis in terms of markets served, principal relationships and product offering, says Azelis.
Chemroy was founded in 1967 and currently has 59 employees. Headquartered in Brampton, Ontario, Chemroy offers warehousing across Canada and has further offices in Laval, Quebec and Vancouver, British Columbia.
Commenting on the announcement, Frank Bergonzi, CEO and President for Azelis Americas, says: “This transaction is an important milestone for Azelis in the Americas. Chemroy is a leading distributor of specialty chemicals and food ingredients in Canada, with an excellent reputation. We share similar values and culture and this combination will ensure a more robust product portfolio to our customers.”
“Chemroy is complementary to Azelis in terms of markets served and the transaction will give us a better and wider product offering. It will also enable us to continue to grow our food and nutraceutical business in Canada and the US. The time was right for both companies to combine forces,” Bergonzi tells FoodIngredientsFirst.
He stresses how Canada is one of the largest economies in the world and has a large industrial presence. “We already had an established business in Azelis Canada. Now, together with Chemroy, we are a clear leader in specialty chemicals and food ingredients in Canada. It is, therefore, a significant market for Azelis,” he notes.
According to Bergonzi, a wide range of food and nutraceutical ingredients will benefit from this acquisition. “Chemroy has a dedicated salesforce into the food and nutraceutical segments,” he adds.
“To supplement our organic growth, we will continue to grow inorganically via our M&A strategy, in acquiring top tier leaders in their respective markets and geographies. That will always remain an Azelis priority,” claims Bergonzi.
“We are confident in the success of this acquisition, which is an exciting opportunity for our employees to join forces with an established global player in Azelis. We share similar strategies and culture and I am confident that Chemroy will continue to thrive under its new ownership,” John Graham, President at Chemroy concludes.
The acquisition of Chemroy illustrates the support provided by EQT since the initial acquisition of Azelis in 2018. EQT is confident that the expanded range of services and global reach provided by this acquisition will continue to bring benefits to customers and principles of the combined group, says Azelis.
Azelis has already made several moves in 2019 so far. In January 2019, the company acquired Euroconsultant, as it seeks to expand its meat ingredient distribution platform in Poland.
Azelis is also strengthening its position in the Indian food segment by acquiring the distribution activities of MK Ingredients & Specialties and SSD Industries (MK) in India, which was announced earlier this month.
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