PHOTO: Celebrating the signing of the Plastichem acquisition by Brentagg in December were, from left, Helmut Oellerman (managing director, Plastichem), Dirk Grolman (director, Grolman Beteiligungs GmbH), Stuart Gibson (founder and controlling shareholder, Plastichem), Michael Thomson (director Middle East and Africa, Brenntag), Carl Blomme (regional president Europe, Middle East and Africa, Brenntag Holdings), Mike McKenzie –(CEO, Plastichem), Christian Kampmann (corporate mergers & acquisitions, Brenntag AG)
BRENNTAG, a market leader in chemical distribution, has signed an agreement to purchase 100% of the shares of the specialty chemicals distributor Plastichem, South Africa. This acquisition provides Brenntag a key position in the polymers industries in and beyond South Africa.
“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,” said Karsten Beckmann, a member of the management board of Brenntag Group and CEO Brenntag Europe Middle East and Africa (EMEA).
“With Plastichem, we are diversifying our current product portfolio in South Africa towards an increased offer of specialty chemicals.”
Plastichem, based in Kempton Park, Johannesburg, 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 at Brenntag Europe West & MEA, said: “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 in the financial year 2016. Closing of the transaction is subject to contractually agreed closing conditions.
About Brenntag
Brenntag is involved in all major chemical distribution 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 €10.0-billion ($13.3-billion).
Brenntag connects 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.
www.plastichem.co.za