Brenntag Acquires EAC Industrial Ingredients for EUR160 Million
EAC Industrial Ingredients holds an important market share and covers with subsidiaries markets in nine countries with local presences in Thailand, Vietnam, Indonesia, Philippines, Malaysia, Singapore, Cambodia, India and Bangladesh.
5 Jul 2010 --- Brenntag, global market leader in chemical distribution, has further expanded its market position in the growth area Asia Pacific by acquiring 100% of the shares of EAC Industrial Ingredients Ltd. A/S, a sizeable provider of chemical distribution solutions in South and South East Asia. Selling company is Copenhagen based The East Asiatic Company Ltd. A/S, a stock-listed Danish company. The purchase price is EUR 160 million on a cash and debt free basis. With the acquisition, Brenntag gains access to an established distribution network active in nine countries with exceptional growth potential.
With this major acquisition in South and South East Asia Brenntag reinforces its growth strategy in the Asia Pacific region. EAC Industrial Ingredients holds an important market share and covers with subsidiaries markets in nine countries with local presences in Thailand, Vietnam, Indonesia, Philippines, Malaysia, Singapore, Cambodia, India and Bangladesh. In addition the high level of benefits between Brenntag and EAC Industrial Ingredients is expected to further enhance both customer service and access to world class suppliers. With extensive sales and marketing resources EAC Industrial Ingredients represents in-depth knowledge of local markets and relationships to more than 8,000 customers. For 2010 Brenntag expects sales of about EUR 220 million for EAC Industrial Ingredients.
“The acquisition of EAC Industrial Ingredients is a major step in the execution of Brenntag's growth strategy. We expand our existing presence in the growing markets of Asia Pacific, add significant market share and improve our market position in focused industries like Food & Beverage, Coatings, Personal Care and Pharma”, says Stephen Clark, CEO of Brenntag. “This strategic milestone develops our market position from a foothold in Asia to an established operational network, supporting our continued growth path in the region.”
The acquisition is a strategic investment for Brenntag. In the Asia Pacific region growing demand is expected in particular for sectors like Food, Cosmetics, Pharma and Coatings. Customers from these sectors are important for Brenntag. The knowledge of regional markets and their respective individual requirements will offer additional business opportunities and provides for synergies with existing Brenntag suppliers and customers. With the acquisition of EAC Industrial Ingredients Brenntag is one of the few companies operating in the whole region.
Henri Nejade, President of Brenntag Asia Pacific says: “We are delighted to acquire EAC Industrial Ingredients because it perfectly meets our requirements to further grow in this region. The acquisition will support our ability to better serve local demands in these fast-growing countries. I am convinced we will continue the Brenntag success story in Asia Pacific which is a major growth area for the global economy and consequently for Brenntag, too.”
Brenntag has already significant assets in Asia Pacific with 17 sites in 11 countries and the acquisition of EAC will increase the number of personnel in the region to about 1,000.
The Closing of the deal is expected in the course of July. EAC Industrial Ingredients’ existing team will continue their successful work under the Brenntag brand. Brenntag expects significant benefits from the combination of the two operations. No merger control notification was necessary with regard to the acquisition.
