Brenntag (WKN A1DAHH), a global leader in chemical distribution, has signed an agreement with Canada Colors and Chemicals Ltd. to acquire the company’s chemicals distribution business (“CCC”). Headquartered in Toronto, CCC offers a full-line portfolio with operations in the main industrial areas across all of Canada. CCC serves a highly diversified customer base in industries such as Life Sciences, Water Treatment, Coatings, Construction, Energy and Mining.
Steven Holland, CEO Brenntag Group: “With the acquisition of CCC, Brenntag strengthens its focus and specialties capabilities in both Life Science and Material Science. CCC’s broad positioning and extensive product and service portfolio perfectly complement Brenntag’s offer to our customers and suppliers.”
CCC maintains well-invested, scalable and flexible facilities across Canada to store, blend and package industrial and specialty chemicals and products. Its Life Science offer includes a state-of-the-art ingredients application lab, several own formulations and a highly qualified technical staff. CCC’s blending capabilities and formulation expertise in the Oil & Gas business opens interesting synergetic business opportunities with Brenntag Canada’s Oil & Gas operations. In addition, the company’s own truck fleet will extend Brenntag’s value-added service offering.
Markus Klähn, Member of the Management Board of Brenntag Group and CEO Brenntag North America: “This strategic acquisition will solidify our position as partner of choice for our suppliers and customers in Canada and will sustainably support our collective growth ambitions in this industry.”
Guy Carr-Harris, Chairman and CEO of Canada Colors and Chemicals Ltd.: “The sale of our chemicals distribution business to Brenntag is an exciting opportunity for our employees and stakeholders to join forces with one of the world’s leading international chemical distribution companies. The combination of Brenntag’s global reach and our technical capabilities provide a compelling platform for our customers and suppliers.”
The business generated total sales of approximately 140 million EUR in the financial year 2017. Gross profit 2017 amounted to around 25 million EUR. The business is valued at an Enterprise Value of around 86 million EUR. Closing of the transaction is expected within the course of the next weeks, subject to contractually agreed closing conditions.