MUEHLHEIM (dpa-AFX) - German chemical and ingredients distributor Brenntag AG (BNTGF.PK) Thursday said it has signed an agreement to acquire China's Zhongbai Xingye Food Technology (Beijing) Co., Ltd. in two steps, aiming to expand its food and nutrition business in China.
The company now agreed to buy a majority stake of 67% of the Chinese distributor of specialty food ingredients, including dairy products and proteins, at an enterprise value of about 90 million euros. The remaining 33% will be acquired by Brenntag by end of 2024.
The acquiring business generated sales of approximately 146 million euros over a twelve-months period up to June 2020. Closing of the first tranche is subject to certain contractual conditions and regulatory approvals and is expected to be completed in the first half of 2021. Closing of the second tranche is expected at the end of 2024.
Following the acquisition, the business will be settled within the global division of Brenntag Specialties.
Christian Kohlpaintner, CEO Brenntag Group, said, 'The chemical distribution market in Asia Pacific and especially in China is growing dynamically. We see a substantial potential there and we will strengthen the focus on the region in terms of our M&A strategy.'
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