Brenntag to buy Zhong Yung Chemical
Gains foothold in China market
Brenntag is to acquire solvents distributor Zhong Yung Chemical in a five-year takeover, which will involve the formation of a joint venture in China.
The deal – the first tranche of which is expected to close in Q3 2011 – will see the German distributor acquire a majority stake of 51%. Both companies will then enter into a joint venture for Brenntag to establish a solid business platform in China, following which Brenntag will acquire the remaining stake in 2016.
“This transaction strengthens Brenntag’s growth strategy in the Asia-Pacific region,” commented Brenntag ceo Steve Holland. “This acquisition is a strategic investment for Brenntag in China and also a first step through which Brenntag demonstrates full commitment to build a solid distribution network in China.”
Zhong Yung has approximately 2,000 customers and over 100 suppliers as well as infrastructure including laboratories, blending and storage capabilities, and its sales organisation covers the north, east and south of China.