Brenntag, the German cosmetics ingredients distributor, has acquired Chinese specialty ingredients company Shanghai Saifu Chemical Development (Saifu) for an undisclosed sum.
The move is to boost Brenntag's presence in the Asian personal care market as part of its wider global growth strategy.
The acquisition comes after Brenntag abandoned plans for a possible merger with US chemicals company Univar Solutions in January.
This followed a series of facility openings in the Americas last year, including a production facility in Massachusetts, US, and a new South American site in Argentina.
The acquisition of Saifu is a “significant step” in Brenntag’s ongoing strategic growth plan, said Michael Friede, COO of Brenntag.
Brenntag is expected to benefit from Saifu’s formulation and product innovation capabilities and dedicated technology application centre, as well as access to its more than 1,000 customers in the Greater China region.
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“Our customers, suppliers, shareholders, and our employees will greatly benefit from becoming part of Brenntag, which is the largest chemical and ingredients distribution company in the world,” added Yu Tao, Managing Director of Saifu.
“We are built on the principles of value and responsibility, attributes which Brenntag stands for as well, and we hope to grow and continue to serve our current and future customers and supply partners as part of the Brenntag family.”
The transaction is expected to close later this year, subject to closing conditions.