German chemical distributor Brenntag has signed an agreement to acquire the specialties chemicals distribution business of Pioma Chemicals, a Mumbai-based distributor of specialty excipients and functional ingredients to the pharmaceutical, personal care and food industries across India, as per a company statement.
The acquired business is expected to generate total sales of over €17.2 million (Rs 137 crore). The transaction, which is expected to close this month, will be structured as an asset deal and the acquired business will become part of Brenntag's Indian arm.
With the acquisition of Pioma Chemical, Brenntag hopes to strengthen its growing business in India by expanding the local and regional strategic supplier and customer relationships and improving the product portfolio.
“This acquisition enables us to expand our position in the Indian specialties distribution market even further, following our successful acquisition of the Zytex distribution business last year,” said Henri Néjade, president and CEO, Brenntag Asia Pacific.
Brenntag had earlier acquired the chemical distribution division of another Mumbai-based firm Zytex to strengthen its nutrition and health business in India.
Founded in 1874, Brenntag operates as a link between chemical manufacturers and chemical users. With over 10,000 products, it caters to more than 170,000 customers. Headquartered in Mülheim an der Ruhr, Germany, it operates a global network with more than 480 locations in more than 70 countries.
Set up in 1989, Pioma Chemicals is into distribution of specialty excipients and supplier of functional ingredients to the pharmaceutical, nutraceutical, personal care, food & allied industries across India. It has partnered with over 20 international companies for the supply of over 2,000 products ranging from functional excipients to actives.
(Edited by Joby Puthuparampil Johnson)