Brenntag, a global market leader in chemical distribution, is strengthening its presence in the South African chemical distribution market with its purchase of Warren Chem. The Cape Town based company, which generated sales of €26.6 million in 2015 financial year, is a leading specialty chemicals distributor focusing on the pharma and food industries.
Karsten Beckmann, member of the board of management of the Brenntag Group and CEO of Brenntag Europe, Middle East and Africa, says: ‘Our strategy is to become a leader in the chemical distribution market in South Africa, the largest market in the African region. The acquisition of Warren Chem perfectly matches this strategy as it complements our existing business in the country.
Together with our subsidiary, Multisol, and the specialty distributors, Lionheart, and Plastichem, both acquired in 2015, Brenntag now holds a strong foothold in the pharmaceutical, food, plastic and rubber, and lubricant industries in South Africa. This is an excellent platform for further growth in the country and beyond.’
A leader in pharma and CAMs ingredients
Warren Chem is a well-established chemical distributor mainly servicing the pharmaceutical and nutraceutical as well as the food and beverage industries. The company perfectly complements Brenntag’s existing product portfolio. Its broad supplier basis includes major international companies. Warren Chem maintains modern warehouse and distribution facilities in Cape Town and Johannesburg, and is well positioned to meet the increasingly strict national and international regulatory requirements of the pharma, CAMs and nutrition markets.
Anthony Gerace, Brenntag Group’s MD of mergers and acquisitions, comments: ‘The complementary product and supplier portfolio of Warren Chem and Lionheart form a Life Science business unit in South Africa. This will be competitively positioned in both the food and the pharma industries, which are strategic focus sectors for Brenntag in southern Africa. The Life Science sector is attractive as it has high growth potential. South African companies are growing and expanding into the sub-Saharan region due to the increasing demand from the emerging middle class. This environment offers great potential for Brenntag to further grow its business.’