Brenntag, the global market leader in chemical distribution, has signed an agreement to purchase 100% of the shares of the specialty chemicals distributor Plastichem Pty Ltd., South Africa. This acquisition provides Brenntag a key position in the polymers industries in and beyond South Africa.
Karsten Beckmann, Member of the Management Board of Brenntag Group and CEO Brenntag Europe Middle East and Africa (EMEA):“This acquisition is an excellent opportunity for us and is completely in line with Brenntag’s strategy to build a chemical distribution platform in key industries in the Middle East and Africa region. With Plastichem, we are diversifying our current product portfolio in South Africa towards an increased offer of specialty chemicals.”
Plastichem, based in Kempton Park, South Africa, is a specialty distributor of high performance polymers for plastics and rubber, enjoying a high reputation in the South African automotive market as well as in the packaging, electronics and engineering industries. The company focuses further on entire supply chain solutions and services to customers in South Africa and Sub Saharan Africa.
Carl Blomme, Regional President Brenntag Europe West & MEA: “With the acquisition we build up market expertise in the continuously growing plastics and rubber industries in the region. This will help us to further expand our business in South Africa with our existing suppliers as well as cover the Sub-Sahara region.”
Plastichem is expected to achieve sales of approximately 26.9 million EUR in the financial year 2016. Gross profit 2016 is expected to amount to around 4 million EUR with a normalized EBITDA of about 1.8 million EUR. The investment totals 8.5 million EUR. Closing of the transaction is expected in the course of the next weeks, subject to contractually agreed closing conditions.