Mülheim/Ruhr, August11, 2015
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 distributorlocated 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 cooperationare 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 TransportLLC 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 companywill be an attractive and reliable partner with high safety and ethical standards in this fast developing region.”
About Brenntag:
Brenntag, the global market leader in chemical distribution, covers all major markets with its extensive product and service portfolio. Headquartered in Mülheim an der Ruhr, Germany, the company operates a global network with more than 490 locations in 72 countries. In 2014, the company, which has a global workforce of more than 13,500, generated sales of EUR 10.0 billion (USD 13.3 billion). Brenntagconnects chemical manufacturers and chemical users. The company supports its customers and suppliers with tailor-made distribution solutions for industrial and specialty chemicals. With over 10,000 products and a world-class supplier base, Brenntag offers one-stop-shop solutions to around 170,000 customers. This includes specific application technology, an extensive technical support and value-added services such as just-in-time delivery, product mixing, formulation, repackaging, inventory management and drum return handling. Long-standing experience and local excellence in the individual countries characterize the global market leader for chemical distribution.
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