Brenntag acquires EPChem’s distribution business

By Natasha Spencer

- Last updated on GMT

Brenntag acquires EPChem’s distribution business

Related tags Marketing

Brenntag, the global market leader in chemical distribution, signs an agreement to acquire the distribution business of EPChem Group in Singapore.

The German-based chemical distribution heavyweight has acquired EPChem’s distribution business in a move to strengthen the chemicals market in Asia-Pacific.

EPChem is a distribution company for special performance chemicals, dedicated to waxes and wax related products for multiple industries and applications, predominantly based in the APAC region. The acquisition will include the group’s distribution businesses in Indonesia and China.

“EPChem’s comprehensive product lines perfectly complement Brenntag’s product portfolio in Asia Pacific,”​ said Henri Nejade, Member of the Management Board of Brenntag Group and CEO Brenntag Asia Pacific.

“In addition, the company has an outstanding track record and long-standing partnership with major global wax producers. With the acquisition, we are strengthening and expanding our specialty chemicals footprint in the region which is one of our strategic growth objectives,” ​Nejade added.

Anthony Gerace, Managing Director Mergers and Acquisitions, Brenntag Group, went on to say: “Waxes have a broad range of applications in several industries such as personal care, coatings, adhesives and roofing and paving.”

“These are attractive industries with high growth potential, especially for innovative products.”

In the year until May 2016, the business created total sales of $54.6 mn (€49 mn). The acquisition is expected to be completed and agreed by the early part of 2017.

Singapore market

In Singapore, Euromonitor International reports that its beauty and personal care industries recorded positive current value growth in 2015, due to the popularity of Korean beauty trends and product innovation and premiumisation.

As brands increasingly focus on product experience for consumers, both online and offline, premiumisation dominated the Singaporean market as consumers have higher expectations of product efficacy and demand high-quality packaging.

This trend, which is particularly key in colour cosmetics, skin care and fragrances, is realised by brands through ingredients, marketing, packaging and price points.

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