Germany based chemical distribution company Brenntag has agreed to acquire South Africa’s Lionheart Chemical Enterprises (Pty) Ltd, a specialty distributor in the South African market operating mainly in the food & beverage sector.
Karsten Beckmann, CEO, Brenntag Europe, Middle East and Africa (EMEA), said, “The acquisition strengthens Brenntag’s position in the South African chemical distribution market. Lionheart’s product portfolio is complementary to other activities of Brenntag in this region through our Multisol and Crest Industrial Chemical businesses. We see great potential to increase our sales by combining existing supplier relations and attracting new suppliers.”
The South African food sector demonstrates long-term fundamental growth due to increasing demand for convenient food as well as the expansion of South Africa’s retailers into Sub-Saharan Africa. Carl Blomme, Regional President Middle East and Africa at Brenntag EMEA, said, “Lionheart has a key position in food specialty chemicals in South Africa and high in-house competencies that Brenntag can leverage. We are creating a food specialty business unit that will hold a well reputable position in this important market sector in the South African region.”
Klaus Gerhardt, managing director of Lionheart, said, “Lionheart has a dispersed and well balanced supplier customer portfolio with sufficient growth potential to be leveraged due to the integration into Brenntag Group.”
The acquired business is expected to have generated total sales of approximately Euro 12 million in the financial year 2014. The closing of the transaction is expected in the course of the next weeks.
Karsten Beckmann, CEO, Brenntag Europe, Middle East and Africa (EMEA), said, “The acquisition strengthens Brenntag’s position in the South African chemical distribution market. Lionheart’s product portfolio is complementary to other activities of Brenntag in this region through our Multisol and Crest Industrial Chemical businesses. We see great potential to increase our sales by combining existing supplier relations and attracting new suppliers.”
The South African food sector demonstrates long-term fundamental growth due to increasing demand for convenient food as well as the expansion of South Africa’s retailers into Sub-Saharan Africa. Carl Blomme, Regional President Middle East and Africa at Brenntag EMEA, said, “Lionheart has a key position in food specialty chemicals in South Africa and high in-house competencies that Brenntag can leverage. We are creating a food specialty business unit that will hold a well reputable position in this important market sector in the South African region.”
Klaus Gerhardt, managing director of Lionheart, said, “Lionheart has a dispersed and well balanced supplier customer portfolio with sufficient growth potential to be leveraged due to the integration into Brenntag Group.”
The acquired business is expected to have generated total sales of approximately Euro 12 million in the financial year 2014. The closing of the transaction is expected in the course of the next weeks.