Brenntag achieves strategic market entry in China

Brenntag, global market leader in chemical distribution, has signed a purchase agreement to acquire 100% of Zhong Yung (International) Chemical. The first segment of the deal is expected to close in the 3rd quarter of 2011.

Brenntag will hold a majority stake of 51% and is expected to acquire the remaining stake in 2016. Entering into a joint venture for five years gives Brenntag the opportunity to use the experience and know-how of Zhong Yung and its management team to establish a solid business platform for Brenntag in China. Brenntag’s COO and designated CEO Steve Holland said: "This transaction strengthens Brenntag’s growth strategy in the Asia Pacific region. This acquisition is a strategic investment for Brenntag in China and also a first step through which the group demonstrates full commitment to build a solid distribution network in China. We are continuing to look for further opportunities to support our growth in Asia Pacific.”

Henri Néjade, president of Brenntag Asia Pacific, highlighted: "It is a significant milestone in Brenntag’s Asian business development following the successful acquisition of EAC Industrial Ingredients in 2010.

"We are delighted to team up with Zhong Yung because it opens the opportunity for further growth in China. Zhong Yung is a major chemical distributor with about 2000 customers, more than 100 suppliers and has an excellent infrastructure including laboratories, blending and storage capabilities.” The company is estimated to generate sales of €255M in 2011.