Brenntag, the global market leader in chemical distribution, has signed an agreement to acquire the chemical distribution division of the Zytex Group, a biotechnology food formulation and manufacturing company in India, by means of an asset deal. The acquired food ingredients distribution business will become part of Brenntag India, headquartered in Mumbai.
The acquired business has its focus on enzymes and yeast for a broad application range in the food and beverage industries in India. With this acquisition Brenntag is further strengthening its Nutrition and Health business in India by adding new customer segments and products to its portfolio as well as further expanding its strategic relationships with key global suppliers.
Henri Néjade, President and CEO of Brenntag Asia Pacific: “India is already one of the largest chemical distribution markets in Asia and offers substantial growth opportunities. This acquisition further underlines our commitment to India and our Indian partners. Our Indian business has rapidly grown over the past few years partly through organic growth as well as strategic acquisitions. This new business will improve our economies of scale, broaden our product offerings to our Indian customers, strengthen our Pan-Indian sales and distribution organization and will help us to accelerate the growth of Brenntag India in the coming years.
Brenntag expects the acquired business to generate annual sales of € 7.0 million, gross profit of € 1.8 million and EBITDA of € 1.4 million in the financial year 2013. The investment amount will be € 10.2 million. The transaction is expected to be closed in September.