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  3. Brenntag acquires majority stake in Trychem (Dubai)
2015/11/09

Brenntag acquires majority stake in Trychem (Dubai)

Brenntag acquires majority stake in Trychem (Dubai) to strengthen its market position in the Middle East

Brenntag, the global market leader in chemical distribution, enters into a joint cooperation with 51% ownership in chemical distributor Trychem FZC, Dubai, United Arabic Emirates (UAE). Trychem is active in the distribution of solvents serving the paint, ink and coatings industries mainly in the UAE, Saudi Arabia, Bahrain, Oman, Egypt and East Africa. In addition, the company offers mixing, blending, packaging and labeling capacities. In a first step, Brenntag will hold 51% and Tri Star Transport LLC/JRA Holding 49%.

“We are delighted to work together with a well-positioned chemical distributor located in Dubai to strengthen Brenntag’s market position in the Middle East region, which is of strategic importance for our supplier relationships and global customers. This is an excellent platform for our existing and planned business for the region and shows our strong commitment to this market”, says Karsten Beckmann, Member of the Management Board of Brenntag Group and CEO Brenntag Europe, Middle East and Africa (EMEA). “We see sizeable growth potential in the partnership by combining Trychem’s local expertise and Brenntag’s international distribution knowledge, management know-how and sourcing potential.”

The Middle East is a fast growing region with ongoing investments in chemical production. The chemical distribution market is still fragmented and consolidation offers significant potential for global players like Brenntag. Carl Blomme, Regional President Brenntag Europe West & MEA: “Our plans for the joint cooperation are to increase the existing commodity business and, especially, to develop specialty chemicals with initial focus on selected markets and industrial applications, lubricants and coatings. Following the acquisition of Lionheart Chemical Enterprises in February this year, we now extend our services to customers and suppliers as a pan Middle East and African chemical distributor.”

Eugene Mayne, Group CEO Tri Star Transport LLC and Chairman of the Board of Trychem: “The success combination of Brenntag and Trychem provides effective skills and operational excellence to our customers and suppliers. The joint company will be an attractive and reliable partner with high safety and ethical standards in this fast developing region.”

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