Brenntag Adds to its Strong Market Position in North America
The acquisition enables Brenntag to increase its market share primarily in the New England states and to improve its position in focused industries like Pharmaceuticals, Personal Care and ACES (Adhesives, Coatings, Elastomers, Sealants).
Aug 3 2010 --- Brenntag, global market leader in chemical distribution, continues its growth path and has agreed with Houghton Chemical Corporation (HCC) to acquire certain assets of the Industrial Chemicals & Solvents division of HCC for a total purchase price of USD 7.1 million. The acquisition enables Brenntag to increase its market share primarily in the New England states and to improve its position in focused industries like Pharmaceuticals, Personal Care and ACES (Adhesives, Coatings, Elastomers, Sealants).
The acquired business of HCC is focused on the distribution of industrial chemicals. The unit distributes products in focused industries such as Pharmaceuticals, Personal Care and ACES. The high quality business provides an important contribution to Brenntag North America’s geographic and strategic position in New England, New Jersey and parts of Pennsylvania. For 2010 the aquired division is expected to generate total sales of more than USD 30 million.
Stephen R. Clark, CEO of Brenntag: “Brenntag and Houghton Chemicals share a history of growth, strong supplier relationships and customer focus which provides a firm foundation for the future.The division’s strong regional presence as well as its high quality business in strategic industries provides a significant complement to Brenntag’s geographic and strategic position in the Northeastern United States.”
The acquisition is another step for Brenntag in North America to increase the market share mainly in the New England states and to gain new customers in this area. Therefore Brenntag will realize cross-selling opportunities as a result of this additional customer base. Brenntag North America delivered solid earnings growth in Q1 2010 which demonstrates the growing demand of Brenntag’s customers in this area.
