- Brenntag acquires Multisol Group Limited, the holding company of the Multisol Group which is engaged in the distribution of high value specialty chemicals
- Multisol provides a further expansion of our product portfolio into lubricant additives and high quality base oils
- Multisol expands Brenntag’s mixing and blending capabilities
- Multisol’s geographic presence in Central and Eastern Europe and Africa complements Brenntag’s existing infrastructure and logistics network to drive sales growth
With today’s announced acquisition of Multisol Group Limited, Brenntag, the global market leader in chemical distribution, further develops its market position in the distribution of specialty chemicals with focus on lubricants and base oils including mixing and blending capabilities. Multisol is a specialist in the distribution of lubricant additives and base oils in Europe and Africa working together with some of the world’s largest producers. For the year 2012, the company expects sales of GBP 238 million. The transaction provides a further expansion of our product portfolio into lubricant additives and base oils and, at the same time, increases Brenntag’s capabilities in mixing and blending.
Steven Holland, CEO of Brenntag, comments: “Multisol seamlessly fits into our strategic approach to enlarge our product focus of specialty chemicals including value added services in our core markets in the UK, Western Europe, Central and Eastern Europe and Africa.”
The key industry for lubricants is the automotive sector which faces increasingly stringent emissions standards, especially in the EU and North America. Fuel economy requirements and improved durability are driving the growth of high specification lubricants. Multisol works closely with its customers and suppliers providing strong blending expertise as well as the distribution of both high quality base oils and lubricant additives. As such it is ideally positioned to benefit from these long-lasting industry trends. Multisol’s excellent market position is reflected by internationally renowned suppliers.
Multisol operates in various geographic end markets across Europe and Africa with nearly 170 employees, thus ideally complementing Brenntag’s existing distribution network and enlarging its formulation as well as mixing and blending capabilities. At the same time Brenntag expects high synergies from the transaction, both in cross-selling opportunities and further efficiency improvements. By combining sales activities in the UK, Western Europe, CEE and Africa and the cross-selling of Brenntag’s existing product portfolio to Multisol’s customer base, the companies aim for continued growth in existing and new markets.
Paul Oliphant, CEO of Multisol will together with his board colleagues continue to lead the operating business of Multisol. “We are pleased to become an important part of such a dynamic company. Multisol has grown significantly over the years and being part of the Brenntag global network will provide us with the assets to support our growth opportunities and improve our service to both our customers and suppliers”, he comments.
As usual for transactions of this kind, the completion of this acquisition is subject to certain merger control clearances which are expected to be obtained during the 4th quarter of 2011.
For additional information on this transaction, please visit our Investor Relations section.
Brenntag is the global market leader in full-line chemical distribution. Linking chemical manufacturers and chemical users, Brenntag provides business-to-business distribution solutions for industrial and specialty chemicals globally. With over 10,000 products and a world-class supplier base, Brenntag offers one-stop-shop solutions to about 160,000 customers. The value-added services include just-in-time delivery, product mixing, formulation, repackaging, inventory management, drum return handling as well as extensive technical support. Headquartered in Mülheim an der Ruhr, Germany, the company operates a global network with more than 400 locations in nearly 70 countries. In 2010 the company realized global sales of EUR 7.6 billion (USD 10.1 billion) with more than 12,000 employees.
This press release may contain forward-looking statements based on current assumptions and forecasts made by Brenntag AG and other information currently available to the company. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. Brenntag AG does not intend, and does not assume any liability whatsoever, to update these forward-looking statements or to conform them to future events or developments.