Brenntag acquires Chinese specialty chemicals distributor Wellstar Group.
Brenntag has signed an agreement to acquire in two steps 100% of the shares in specialty chemical distributor Wellstar Enterprises Company Limited, Hong Kong, and its three Chinese subsidiaries, jointly Wellstar Group.
Brenntag will gain a majority stake of 51% with a first tranche in 2017 and the remaining 49% via the second tranche by 2021. In the period from 2017 to 2021, the business will be operated as a joint venture. Wellstar Group focuses on the distribution of specialty pigments, resins and additives mainly across China.
Wellstar Group is headquartered in Hong Kong with its three mainland China subsidiaries located in Shenzhen, Guangzhou and Shanghai. The company sells and distributes high performance pigments, effect pigments, resins and kaolin used in a broad variety of industries among others in the coatings, inks, plastic and cosmetics industry.
In 2016, the business generated total sales of approximately 27.6 million [euro]. Closing of the first tranche is expected to occur in the course of the next weeks, subject to contractually agreed closing conditions.
|Printer friendly Cite/link Email Feedback|
|Title Annotation:||industry news|
|Date:||Jul 1, 2017|
|Previous Article:||Stepan to acquire surfactant facility in Mexico.|
|Next Article:||Custom Milling & Consulting adds cGMP processing.|