Brenntag Acquires Majority Stake in Trychem
Mülheim an der Ruhr, Germany - Chemical distribution company Brenntag has entered into a joint cooperation with 51 percent ownership in chemical distributor Trychem FZC, Dubai, United Arab Emirates (UAE). Trychem is active in the distribution of solvents serving the paint, ink and coatings industries mainly in the UAE, Saudi Arabia, Bahrain, Oman, Egypt and East Africa. In addition, the company offers mixing, blending, packaging and labeling capacities. In a first step, Brenntag will hold 51 percent and Tri Star Transport LLC/JRA Holding 49 percent.
“We are delighted to work together with a well-positioned chemical distributor located in Dubai to strengthen Brenntag’s market position in the Middle East region, which is of strategic importance for our supplier relationships and global customers. This is an excellent platform for our existing and planned business for the region and shows our strong commitment to this market,” said Karsten Beckmann, Member of the Management Board of Brenntag Group and CEO Brenntag Europe, Middle East and Africa (EMEA). “We see sizeable growth potential in the partnership by combining Trychem’s local expertise and Brenntag’s international distribution knowledge, management know-how and sourcing potential.”
The Middle East is a fast growing region with ongoing investments in chemical production. The chemical distribution market is still fragmented, and consolidation offers significant potential for global players like Brenntag. Carl Blomme, Regional President Brenntag Europe West & MEA, commented, “Our plans for the joint cooperation are to increase the existing commodity business and, especially, to develop specialty chemicals with initial focus on selected markets and industrial applications, lubricants and coatings. Following the acquisition of Lionheart Chemical Enterprises in February this year, we now extend our services to customers and suppliers as a pan Middle East and African chemical distributor.”
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