Brenntag strengthens Specialties business in Asia Pacific by closing two acquisitions
27 Jul 2021 --- Brenntag has made further steps in strengthening its business in China with the closing of two acquisitions within its Specialties division.
The German ingredients distribution specialist most recently acquired the first tranche (67 percent) of Zhongbai Xingye. The closing of the second tranche – and thus the full acquisition of the Chinese food ingredients specialist – is expected to be completed by the end of 2024.
Additionally, at the end of last month, Brenntag completed the acquisition of pigments and additives specialist Wellstar Group. It acquired the remaining 49 percent of shares of the joint venture.
“Strengthening our Brenntag Specialties division, particularly in China, as well as in the Asia Pacific region in general, is a central pillar of our company’s mergers and acquisitions strategy,” says Henri Nejade, management board member of Brenntag and COO of Brenntag Specialties.
“We stuck exactly to our timing in both cases and were able to successfully close the important acquisition steps in the dynamic and growing Asian markets as planned.”
The Chinese company Zhongbai Xingye is dedicated to the distribution of a wide range of specialty food ingredients, including dairy products and proteins.Tapping into the Asian ingredients market
The Chinese company Zhongbai Xingye is dedicated to the distribution of a wide range of specialty food ingredients, including dairy products and proteins.
The acquisition of the leading player in mainland China is an important step for Brenntag to become a full-line distributor of food ingredients in the Asian market, the company asserts.
The Wellstar Group is headquartered in Hongkong and operates three subsidiaries in Mainland China located in Shenzhen, Guangzhou and Shanghai.
Since Brenntag acquired a majority stake (51 percent) in Wellstar Group with a first tranche in August 2017, the business was operated and developed as a joint venture servicing a broad range of industries.
With the closing of the second tranche, the Wellstar Group is 100 percent owned by Brenntag.
Global business developments
Brenntag has been relatively active in the ingredients space, specifically plant-based ingredients, for some months.
Earlier this month, Brenntag inaugurated its Food Application and Development Centre in Johannesburg, South Africa. The move comes amid a drive to expand the company’s offerings in savory applications.
In June, the company acquired the US-located JM Swank from Platinum Equity. The distributor of food ingredients reported sales of approximately US$500 million in 2020.
Last April, Brenntag Food & Nutrition inked a distribution agreement with Marigot to distribute Marigot’s plant and marine-based minerals in Denmark.
Meanwhile, in March, Brenntag Food & Nutrition in Latin America inked a distribution agreement with Axiom Foods for its plant-based proteins in Argentina, Bolivia, Chile and Peru.
Edited by Benjamin Ferrer
