June 8 2022, David R Brown
Brenntag greatly expands its footprint in the Specialties chemicals distribution market in Saudi Arabia by acquiring a stake in Al-Azzaz Chemicals
Brenntag (ISIN DE000A1DAHH0), the global market leader in chemicals and ingredients distribution, is to partner with the Al-Azzaz Chemicals Company via a 75/25 joint venture. While Brenntag has been active in Saudi Arabia, this joint venture greatly expands the company's presence and footprint with one of the largest speciality chemicals distributors on the Arabian Peninsula.
I am excited to partner with Al-Azzaz Chemicals. This joint venture will further strengthen our position in the entire Middle East region.Henri Nejade
Member of the Management Board of Brenntag Group and COO Brenntag Specialties
Henri Nejade, Member of the Management Board of Brenntag Group and COO Brenntag Specialties: “Saudi Arabia is by far the largest market in the Middle East and a key market for Brenntag with a very attractive specialties chemical distribution market size and favorable geographic position in the region. Therefore, I am excited to partner with Al-Azzaz Chemicals. This joint venture will further strengthen our position in the entire Middle East region.”
“Partnering with Brenntag's global presence is a natural next step in our growth journey,” comments Fahad Al-Azzaz, CEO of Al-Azzaz Holding, owner of Al-Azzaz Chemicals. “We look forward to joining our experience and specialty expertise with Brenntag to deliver a better and tailored service to our customers.”
Al-Azzaz Chemicals Company, established in 1984, is a distributor of specialty chemicals in Saudi Arabia. The company's key markets are the Food and the Pharmaceutical industries, Plastics and Material Science additives and Petrochemicals.
Brenntag's alliance in Saudi is represented through Trychem FZCO, the UAE based Joint Venture of which Brenntag acquired a majority stake in 2015. The company, originally active in essential chemicals, such as solvents & blends in UAE and the GCC countries, has meanwhile expanded to also cover the specialty chemicals business in the region with a focus on Lubricants - Food - Coatings & Construction.
Al-Azzaz Chemicals generated sales of EUR 25 million in the financial year 2021. Closing of the transaction is expected to be completed until August 2022.
Brenntag is the global market leader in chemicals and ingredients distribution. The company holds a central role in connecting customers and suppliers of the chemical industry. Headquartered in Essen, Germany, Brenntag has more than 17,000 employees worldwide and operates a network of about 700 sites in 78 countries. In 2021, Brenntag generated sales of around 14.4 billion EUR. The two global divisions, Brenntag Essentials and Brenntag Specialties, provide a full-line portfolio of industrial and specialty chemicals and ingredients as well as tailor-made application, marketing and supply chain solutions, technical and formulation support, comprehensive regulatory know-how, and digital solutions for a wide range of industries. In the field of sustainability, Brenntag pursues specific goals and is committed to sustainable solutions in its own sector and the industries served.
Source(s): Brenntag Press Release