Chemical distribution mergers and acquisitions enter active period
2018-05-15 14:00:58
As the impact of the economic recession subsides, global chemical distribution mergers and acquisitions will enter an active period. Przewow’s global chemical leader, Tracy Stuffer, said that many companies want to achieve greater growth, but natural development alone cannot be achieved, so strategic mergers and acquisitions are complementary to natural development. According to Edgar Nordman, president of the European Chemicals Distributors Association (FECC), “M&A activity is recovering and we will see more actions in this area, especially involving private equity investment companies.â€
The North American family business faced with the sale of Chao Shifu said: "In general, if there are many small-scale enterprises in an industry, it will certainly lead to a series of industry consolidation." And China and North America have many smaller Chemical distributors.
Chris Yane, President of the American Chemical Distributors Association (NACD), said that manufacturers want to outsource their distribution operations and reduce costs through the sale of some products, which in the long term is beneficial to mergers and acquisitions in the chemical distribution industry. Most chemical distribution companies in North America are family-owned companies. With the “baby boom†generation entering retirement age in the next 5 to 10 years, some companies must make choices about the fate of family businesses. He said: “In some cases, there will be successors who come out. But without a clear successor, selling a company becomes a viable option. In the next 10 years, this will be one of the factors affecting North American family-owned companies. An important factor." He pointed out that due to the frequent mergers and acquisitions in the past 10 years, the American Chemical Distributors Association has now reduced to more than 50 members.
Both Jayne and Steffe believe that management issues will be a challenge for small businesses. Although this is not the main driving force for mergers and acquisitions, it has, to a certain extent, prompted mergers and acquisitions.
Asia is becoming strategically focused. PricewaterhouseCoopers predicts that Western economic development will slow for several years, which makes the importance of investment in Brazil, India, China, and Russia’s “BRIC†countries appear to be particularly prominent. 2011 GDP in these regions The growth rate will be 4% to 9%.
Stuffer said: "The activity of M&A in Asia will surely increase. I have already seen the integration of Asian markets and M&A will become more and more active."
Stephen Clarke, president of Brenntag, Germany, points out that chemical distribution is a large-scale and intensive business, and M&A growth is a value-driven. She said: “Chemical manufacturers are increasingly expecting distributors to have strong local and global capabilities, technical expertise, and information exchange systems. Customers want distributors to provide a wide range of product bundles, and establish and operate global sourcing and In addition, in order to reduce the complexity and the consequent costs, manufacturers also try to reduce the number of distributors they work with.†Since 1992, Brentage has conducted 95 transactions, of which 24 It was completed after 2007. The company stated that its important strategic mergers and acquisitions are mainly concentrated in Asia-Pacific, Latin America and Eastern Europe, and of course also include strong Europe and North America.
John Zomo, CEO of Univar, United States, said that China has extraordinary growth opportunities and its chemical distribution company hopes to expand its scale in South America and China. M&A will play an important role. China is a highly decentralized market composed of small and medium-sized enterprises. There are many opportunities for large-scale development through mergers and acquisitions. Therefore, there is an opportunity in China to merge high-quality chemical distributors, but may face competition with other foreign bidders.
The Big Three Moved Frequently In 2009, Brentage became the global leader in chemical distribution with a revenue of 6.4 billion euros, followed by Univar, with a sales volume of 7.2 billion U.S. dollars. This year, Brentage completed four M&A transactions: Acquisition of the food, water treatment and paper products business of Productos Riba, a Spanish chemical distributor; Acquisition of part of chemical raw materials and solvent assets of Horton Chemical Company; Takeover Malaysian EAC industrial raw materials; acquired French chemical distributor Metaseel.
Mark Fermont, the founder of DistriConsult in Switzerland, stated that Brentage has strong advantages in terms of asset size, company distribution, strategy and management skills. In March of this year, Brentage completed an initial public offering (IPO), raising a total of 747.5 million euros. This fund improves the company's financial liquidity and facilitates M&A activities. Brentage’s initial public offering may restore the stagnant M&A market.
Univale submitted an initial public offering in June this year, raising an amount of up to $862.5 million. In early October, Uniwell acquired a distributor of household chemicals and the transaction amount was unknown.
The Ashland Chemicals Distribution Company, headquartered in the United States, is a business unit of Ashland, a global specialty chemicals manufacturer, and the third largest chemical distributor in the world. In 2009, sales reached US$2.9 billion. Ashland announced on November 8 that it plans to sell Ashland Chemicals Distribution Company for US$930 million. The transaction is expected to be completed in March 2011.
The North American family business faced with the sale of Chao Shifu said: "In general, if there are many small-scale enterprises in an industry, it will certainly lead to a series of industry consolidation." And China and North America have many smaller Chemical distributors.
Chris Yane, President of the American Chemical Distributors Association (NACD), said that manufacturers want to outsource their distribution operations and reduce costs through the sale of some products, which in the long term is beneficial to mergers and acquisitions in the chemical distribution industry. Most chemical distribution companies in North America are family-owned companies. With the “baby boom†generation entering retirement age in the next 5 to 10 years, some companies must make choices about the fate of family businesses. He said: “In some cases, there will be successors who come out. But without a clear successor, selling a company becomes a viable option. In the next 10 years, this will be one of the factors affecting North American family-owned companies. An important factor." He pointed out that due to the frequent mergers and acquisitions in the past 10 years, the American Chemical Distributors Association has now reduced to more than 50 members.
Both Jayne and Steffe believe that management issues will be a challenge for small businesses. Although this is not the main driving force for mergers and acquisitions, it has, to a certain extent, prompted mergers and acquisitions.
Asia is becoming strategically focused. PricewaterhouseCoopers predicts that Western economic development will slow for several years, which makes the importance of investment in Brazil, India, China, and Russia’s “BRIC†countries appear to be particularly prominent. 2011 GDP in these regions The growth rate will be 4% to 9%.
Stuffer said: "The activity of M&A in Asia will surely increase. I have already seen the integration of Asian markets and M&A will become more and more active."
Stephen Clarke, president of Brenntag, Germany, points out that chemical distribution is a large-scale and intensive business, and M&A growth is a value-driven. She said: “Chemical manufacturers are increasingly expecting distributors to have strong local and global capabilities, technical expertise, and information exchange systems. Customers want distributors to provide a wide range of product bundles, and establish and operate global sourcing and In addition, in order to reduce the complexity and the consequent costs, manufacturers also try to reduce the number of distributors they work with.†Since 1992, Brentage has conducted 95 transactions, of which 24 It was completed after 2007. The company stated that its important strategic mergers and acquisitions are mainly concentrated in Asia-Pacific, Latin America and Eastern Europe, and of course also include strong Europe and North America.
John Zomo, CEO of Univar, United States, said that China has extraordinary growth opportunities and its chemical distribution company hopes to expand its scale in South America and China. M&A will play an important role. China is a highly decentralized market composed of small and medium-sized enterprises. There are many opportunities for large-scale development through mergers and acquisitions. Therefore, there is an opportunity in China to merge high-quality chemical distributors, but may face competition with other foreign bidders.
The Big Three Moved Frequently In 2009, Brentage became the global leader in chemical distribution with a revenue of 6.4 billion euros, followed by Univar, with a sales volume of 7.2 billion U.S. dollars. This year, Brentage completed four M&A transactions: Acquisition of the food, water treatment and paper products business of Productos Riba, a Spanish chemical distributor; Acquisition of part of chemical raw materials and solvent assets of Horton Chemical Company; Takeover Malaysian EAC industrial raw materials; acquired French chemical distributor Metaseel.
Mark Fermont, the founder of DistriConsult in Switzerland, stated that Brentage has strong advantages in terms of asset size, company distribution, strategy and management skills. In March of this year, Brentage completed an initial public offering (IPO), raising a total of 747.5 million euros. This fund improves the company's financial liquidity and facilitates M&A activities. Brentage’s initial public offering may restore the stagnant M&A market.
Univale submitted an initial public offering in June this year, raising an amount of up to $862.5 million. In early October, Uniwell acquired a distributor of household chemicals and the transaction amount was unknown.
The Ashland Chemicals Distribution Company, headquartered in the United States, is a business unit of Ashland, a global specialty chemicals manufacturer, and the third largest chemical distributor in the world. In 2009, sales reached US$2.9 billion. Ashland announced on November 8 that it plans to sell Ashland Chemicals Distribution Company for US$930 million. The transaction is expected to be completed in March 2011.