Germany-based chemical distributor Brenntag has signed an agreement to acquire the chemical distribution division of the Zytex Group, a Mumbai-based biotechnology food formulation and manufacturing company, for €10.2 million ($13.7 million), as per a company statement. Post acquisition, the division will become part of Brenntag’s Indian arm which is located in Mumbai.
This acquisition would help Brenntag further strengthen its nutrition and health business in India by adding new customer segments and products to its portfolio as well as expand its strategic relationships with key global suppliers.
The chemical distribution business focuses on enzymes and yeast for a broad application range in the food and beverage industries in India. Brenntag expects that the new business would generate annual sales of €7.0 million, gross profit of €1.8 million and EBITDA of €1.4 million in financial year 2013.
"Our Indian business has rapidly grown over the past few years, partly through organic growth as well as strategic acquisitions. This new business will improve our economies of scale, broaden our product offerings to our Indian customers, strengthen our pan-Indian sales and will help us to accelerate the growth of Brenntag India in the coming years," said Henri Néjade, president and CEO of Brenntag Asia Pacific.
Founded in 1874, Brenntag operates as a link between chemical manufacturers and chemical users. With over 10,000 products, Brenntag caters to more than 170,000 customers. In 2012, the company realised global sales of $12.5 billion with nearly 13,000 employees.
Zytex Biotech develops and markets enzymes and biotech products in more than 14 countries to improve process efficiency, performance and sustainability in a wide range of industries, from textile, nutraceutical, cosmetic, to food & baking, wine & alcohol, starch, pharmaceutical and animal feed. The firm had setup its first manufacturing facility in 1996 in Silvassa.
(Edited by Joby Puthuparampil Johnson)