Brazil merger is largest Lat Am resin distributor

05 December 2007 20:17  [Source: ICIS news]

HOUSTON (ICIS news)--A merger of three Brazilian companies will form the largest thermoplastic resins distributor in Latin America with Brazilian reais (R) 500m ($278m) in sales in 2008, the companies said on Wednesday.

The merger of Piramidal, Ruttino and Polimarketing into a single distributor called Piramidal follows ongoing consolidation in Brazilian resins production complex. Distributors account for about 11% of Brazil’s resins sales, according to local industry association Abiplast.

“The search is for greater competitiveness and what will determine success of distributors in the market are factors such as size, service structure, scale and greater proximity with the client,” said Piramidal’s general director Wilson Donizetti Cataldi in Portuguese.

The new company will distribute some 100,000 tonnes/year of resins with 6,000 active customers in the region. It will have a 19% market share in Brazil for resins distribution with a particularly strong presence in the southern and southeastern regions of the country, where it will have 24% market share.

Company headquarters will be based in Sao Paulo, with distribution units around the country. Piramidal will operate a fleet of more than 50 vehicles and its own laboratory.

The company said it believes more consolidation will follow in the segment.

“The pioneering spirit of our move will be a reference for current players within distribution to reorganise rapidly and in sync with the new directives of the global marketplace,” Donizetti said.

The company’s revenue will make it one of Brazil’s 500 largest private companies. Piramidal said it plans to expand through acquisitions in Argentina in 2009, Chile in 2010, and Mexico in 2011.

($1.00 = R1.80)

By: John Waggoner
+1 713 525 2653

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