Further develops speciality chemical distribution business
Brenntag has acquired Multisol Group Limited, holding company of the Multisol Group which is engaged in the distribution of high value speciality chemicals, further developing Brenntag’s market position in the distribution of speciality chemicals with a focus on lubricants and base oils including mixing and blending capabilities.
Multisol is a specialist in the distribution of lubricant additives and base oils in Europe and Africa working together with some of the world’s largest producers. For the year 2012, the company expects sales of £238m. The transaction provides a further expansion of our product portfolio into lubricant additives and base oils and, at the same time, increases Brenntag’s capabilities in mixing and blending.
Steven Holland, ceo of Brenntag, comments: “Multisol seamlessly fits into our strategic approach to enlarge our product focus of speciality chemicals including value added services in our core markets in the UK, western Europe, central and eastern Europe and Africa.”
The key industry for lubricants is the automotive sector which faces increasingly stringent emissions standards, especially in the EU and North America. Fuel economy requirements and improved durability are driving the growth of high specification lubricants. Multisol works closely with its customers and suppliers providing strong blending expertise as well as the distribution of both high quality base oils and lubricant additives. As such it is ideally positioned to benefit from these long lasting industry trends. Multisol’s excellent market position is reflected by internationally renowned suppliers.
Multisol operates in various geographic end markets across Europe and Africa with nearly 170 employees, thus ideally complementing Brenntag’s existing distribution network and enlarging its formulation as well as mixing and blending capabilities. At the same time Brenntag expects high synergies from the transaction, both in cross-selling opportunities and further efficiency improvements. By combining sales activities in the UK, western Europe, CEE and Africa and the cross-selling of Brenntag’s existing product portfolio to Multisol’s customer base, the companies aim for continued growth in existing and new markets.
Paul Oliphant, ceo of Multisol will together with his board colleagues continue to lead the operating business of Multisol. “We are pleased to become an important part of such a dynamic company. Multisol has grown significantly over the years and being part of the Brenntag global network will provide us with the assets to support our growth opportunities and improve our service to both our customers and suppliers,” he comments.
As usual for transactions of this kind, the completion of this acquisition is subject to certain merger control clearances which are expected to be obtained during the fourth quarter of 2011.