IMCD N.V., a leading distributor of speciality chemicals and ingredients, has signed an agreement to acquire 100% of the shares of the speciality distribution company, Welex S.A. Holdings (China) Limited and certain related business.
Welex represents a wide range of leading global suppliers providing its customers with an extensive portfolio backed by technical and logistical services. Welex focuses on industries covering coatings and inks, textiles, additives for speciality compounding, and agrochemicals. Welex generated a revenue of approximately HKD322M (ca. €39M) in 2021 and has 68 employees in Hong Kong, Beijing, Shanghai, Guangzhou, and Qingdao offices.
“The addition of Welex opens the door for us to diversify our coatings, paint and ink business, enter the fast-growing agrochemical market and develop into the highly valuable speciality compounding application. In particular, we gain the geographical expansion across China with a strong presence in the Southern part,” commented Andreas Igerl, Managing Director of IMCD China. “This is an important milestone for us as we continue our growth momentum with the diversification of our business.”
Welex adds a coatings and agrochemicals application laboratory to IMCD’s global network of technical centres.
“Having established Welex for almost three decades, my team and I have witnessed the changes in the manufacturing industry of South China and the overall development of the country,” remarked Tony Leung, Managing Director of Welex. “I am impressed with how IMCD can understand and assimilate our differences in style and culture. I am confident that joining IMCD will allow us to grow and prosper on a global platform.”
The closing of the transaction is expected to take place at the earliest of October 31, 2022.