Caldic merges with Connell expanding into specialty chemicals and Asia-Pacific market

01 Mar 2023 --- Caldic has closed the transaction and will merge with Asia-Pacific-based Connell forming an alliance poised to strengthen the company’s regional presence, which will operate under the Connel Caldic brand.

Caldic has a presence in Europe, North America and Latin America. With the merger, Caldic flags that its turnover will be approximately €3 billion (US$3.19 billion).

Caldic and Connell have operations in 43 countries, including 75 formulation centers and application labs. In 2022, Caldic and GTM consolidated for the company to gain a presence in Latin America.

Caldic’s product portfolio includes food ingredients, specialty chemicals and functional solutions for various life sciences and industrial end markets such as personal care and the pharmaceutical markets.

“The global scale of our business will unlock multiple opportunities to create value with our business partners,” says Alexander Wessels, the group’s CEO.

“Today’s worldwide reach will make our offering of unique value-added services and products more widely accessible to the food and nutrition, (bio)pharma, personal care and industrial formulation markets, which will fuel new business development potential across the supply chain,” he continues. 

Wessels explains that the company wants to redefine the parameters of added value in the ingredients and specialty chemicals distribution sector, offering customers a new standard in customized solutions. 

The deal will close by the end of 2023.Asia-Pacific growth potential
Azita Owlia, CEO of Connell Caldic APAC, says the group’s customers increasingly demand customized solutions and extended supply chain services.

“We are committed to leverage the complementarity and synergies between both companies’ value-added product portfolio and broader manufacturing and distribution facilities, to the benefit of our principals and customers,” she notes. 

“Asia-Pacific is a high-growth region with tremendous potential and the joint expertise and capabilities will allow us to help our current and new customers to seize such opportunities. Together we can make a much bigger positive impact in the life sciences and material sciences markets,” Owlia continues.

Business moves
Some companies are seeking mergers and alliances to solidify their market presence amid macroeconomic headwinds, such as rapid inflation and the war in Ukraine.

Last week DSM and Firmenich jointly obtained unconditional competition clearance from the European Commission, inching closer to a merger, pending the decision of the Indian competition authorities.

Meanwhile, Givaudan agreed to purchase a portfolio of Amyris’ cosmetic ingredients, including Neossance Squalane, a high-performance emollient, Neossance Hemisqualane, a plant-based silicone alternative and CleanScreen, a sustainable sun protector.

In December, enzymes manufacturer Novozymes agreed to buy Chr. Hansen to expand in the nutrition industry. The merger resulted in a US$12.3 billion deal, writing history as the largest Danish merger on record.

The deal will close by the end of 2023. 

However, not all deals pull through. Early in the year, Brenntag revealed its buyout talks with Univar Solutions broke down.

By Marc Cervera