18 March 1998 13:06 [Source: ICIS news]
LONDON (CNI)--German chemical distributor Brenntag AG is multiplying its turnover and staff numbers in Italy six times by acquiring two Italian distribution groups.
It is buying an 80% stake in the Cambiaghi group, through stakes in the chemical distribution companies Iempsa Delta Commerciale and Industria Chimica Riminese. The companies belong to the Iempsa Group which is part of Milan-based Cambiaghi. Brenntag plans to take over the rest of Cambiaghi from 1 January next year.
Brenntag has also bought a majority stake in Tradeco, part of the Bombardieri group, which is also based in Milan. It has acquired shares in Bombardieri's other companies Copici, De Stefani, Romana Chimici and Technochimica Industriale, and intends to purchase majority stakes. Chief financial officer of Brenntag, Jochen Schwicking, told CNI Wednesday that the company hopes to own 100% of Bombardieri in two to three years' time.
Brenntag's existing Italian distribution business, Brenntag Spa (formerly known as Weiss Sepic), has a turnover of some DM110m ($60.5m) and between 40-50 employees. The acquisitions will increase its turnover in 1998 to around DM610m and staff levels to 350.
Schwicking said Brenntag would have 18% of the Italian chemical distribution market, which is expected to make it the market-leader. The company was investing in Italy because it had a good future and was expected to be one of the first to join the single European currency, he said.
There was a very good fit between Brenntag's existing activities and the companies being acquired, which distributed both speciality chemicals and commodities including solvents, acids and lyes, Schwicking added.
Financial details of the acquisitions were not revealed. The transactions are expected to be concluded by mid-April.
Brenntag is part of Veba subsidiary Stinnes. It has more than 3800 employees, around 130 distribution centres and a turnover of around DM4.7bn.
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections