2003-2006

From Bahn to Bain

In February 2003, Deutsche Bahn AG acquires Stinnes AG and with it the Brenntag group of companies. The aim of this takeover by Deutsche Bahn is to join forces with Stinnes and Schenker to create an integrated, globally active logistics group. As chemicals distribution is not one of its core activities, the Bahn Group begins looking for a buyer for Brenntag.

In March 2004, a new page is turned in the Brenntag chronicle: US private equity company Bain Capital, which manages private funds takes over the Brenntag Group from Deutsche Bahn AG.

With an investment capital of around US $ 17 billion, Bain is one of the world's leading private equity companies and holds stakes in more than 200 companies in various sectors - from consumer goods and medical technology to information technology and logistics.

The commitment of Bain Capital is a key factor in the successful future of the Brenntag Group. The decision to invest in Brenntag creates an important signal: Bain Capital has faith in Brenntag's ability to achieve above-average growth and high profitability. And Brenntag is happy to take up the challenge: it profits more than any of its competitors in the chemicals distribution sector from its advantages and strengths as an international and multicultural company. Employees, customers and suppliers all benefit from global access to all key markets for the procurement of chemicals as well as the ongoing exchange of know-how and expertise within the entire group of companies.

Brenntag in the fast lane

Brenntag satisfied the high expectations of new owner Bain. Despite the bleak economic scenario and increasingly fierce competition in the chemical distribution segment, Brenntag succeeded in extending its market leadership in 2004 by making targeted investments and strategic acquisitions:

In November 2004, Brenntag opened the world's first fully automatic high-bay warehouse for liquids and solids at the Duisburg location in Germany. Just a few weeks earlier, the company completed the expansion of its facility in Sao Paolo, Brazil. This made the facility, which also complied with the latest environmental standards, the biggest Brenntag location in Latin America at the time with an annual handling volume of 40,000 tons.

At the beginning of 2004, Brenntag took over Polish plastics distributor Orlen Polimer, underlining its presence in Central and Eastern Europe, and further extended this presence by setting up new subsidiary Brenntag Kimya in Istanbul, Turkey.

In order to boost its standing in the specialty chemicals segment in one of the key UK growth markets, Brenntag took over the activities of English specialty chemicals distributor Aquacryl Ltd./Chemacryl Ltd. (Kent) at the end of 2004. This acquisition enabled Brenntag to offer its customers and suppliers an even broader range of know-how and expertise in the ACES business (Adhesives, Coatings, Elastomers, Sealants).

Brenntag stepped up its targeted growth strategy in 2005, substantially boosting the cost efficiency of the logistics network through the successful integration of Herkommer & Bangerter. Acquisitions in the UK and Spain expanded Brenntag's business operations in the European market for specialty chemicals. The company also extended its activities in Switzerland, Turkey and Russia – and also opened a further facility in the Polish city of Poznan as part of its dynamic growth strategy for Central and Eastern Europe.

Brenntag also expanded its operations in North America in 2005, opening an integrated distribution center in Lancaster (Texas) in February 2005. This was followed by the acquisition of the oil and gas business of J.A.M. Distributing Company (southern Texas) in April 2005. Then, in October 2005, Brenntag took over US company Quadra Chemicals, underlining its commitment to the food, paper, pharmaceutical and energy sectors.

The company succeeded in growing even faster in 2006: in March 2006, Brenntag purchased the North American company LA Chemical, and this acquisition made it a market leader in western region of the USA.

At the end of May 2006, Brenntag announced the successful takeover of Schweizerhall Chemie AG, the leader in the Swiss chemical distribution market, and Albion Chemical Group, the leading distributor of chemicals in the UK and Ireland. Both acquisitions were key to achieving full-coverage market leadership in Europe, as Brenntag was previously underrepresented in these regions. The takeovers took the total number of employees at Brenntag above the 10,000 mark.

BC Partners buys Brenntag

On July 25, 2006 Brenntag announced that private equity company Bain Capital had sold its Brenntag investment to the funds advised by BC Partners. Subject to the approval of the antitrust authorities, this signals the start of another new era for Brenntag after just two years. The new owner will continue to support Brenntag in the pursuit of its global growth strategy.