News bulletin – chemical distribution

NEWS BULLETIN

CHEMICAL DISTRIBUTION

UNIVAR ACQUIRES NEXEO SOLUTIONS

Univar has completed the acquisition of Nexeo Solutions, creating what it calls “a leading global chemical and ingredients solutions provider”. The combined company is now trading as Univar Solutions, with a new website to reflect the revised branding.

“Univar Solutions is uniquely positioned to drive growth and deliver significant value for shareholders, customers, suppliers and employees,” says David Jukes, Univar Solutions president and CEO. “Together, we have the ability to redefine chemical and ingredients distribution, to deliver superior growth for our partners, people and shareholders. Our new brand name reflects our commitment to combine the best qualities of each legacy company to create an innovative industry leader.”

Univar Solutions will, the company says, provide customers with easy access to a broad selection of products from leading suppliers. Through a growing portfolio of value-added services, Univar Solutions will “go beyond distribution to help accelerate innovation and efficiency in operations”. Backed by industryleading digital tools and a global network of 17 ‘Solution Centres’, the company promises to help create novel formulations and recipes that distinguish brands in the marketplace. www.univarsolutions.com

RISING REVENUES AT IMCD

IMCD has reported 2018 revenues of €2.38bn, a 25 per cent increase on the 2017 figure, with operating EBITA up by a similar proportion at €202.1m. Adjusted for currency movements, revenues were up 29 per cent and EBITA 30 per cent.

“2018 was an outstanding year for IMCD, with all our regions contributing to this success,” says CEO Piet van der Slikke. “We have made good progress with the integration of our existing businesses in the US and Canada and with the acquisition of ET Horn, enabling IMCD US to become a nationally operating organisation. With our newly developed global digital infrastructure, we will continue to enhance customer offerings. Despite today’s geopolitical uncertainties, we remain positive about our ability to translate new opportunities into future growth.’’

IMCD’s Americas segment was the star performer for the year, with operating EBITA up 69 per cent at €60.1m. That partly reflects the completion of the ET Horn acquisition at the end of July, but IMCD also notes that, despite geopolitical uncertainties, the North American chemicals distribution market showed good growth in 2018. In addition, Brazil’s economic recovery continued, with rising confidence buttressing momentum in consumer sentiment. In particular, IMCD Brasil’s pharmaceutical activities delivered solid growth. www.imcdgroup.com

AZELIS’ CANADIAN CONNECTIONS

Azelis has acquired Chemroy, a Canadian distributor of specialty chemicals and food ingredients. Chemroy offers warehousing across Canada and the sale will place Azelis as one of the leading specialty distributors in the nation.

“This transaction is an important milestone for Azelis,” says Frank Bergonzi, CEO and president of Azelis Americas. “Chemroy is a leading distributor of specialty chemicals and food ingredients for CASE in Canada, with an excellent reputation. We share similar values and culture, and this combination will ensure a more robust product portfolio to our customers.”

“With the acquisition of Chemroy, we establish a strong footprint in Canada,” adds Hans Joachim Müller, Group CEO at Azelis. “This is an excellent strategic fit and we are excited by the opportunity for further growth, in both Canada and the US. Chemroy’s activities in the food and nutraceutical markets will allow us to expand this segment, by leveraging our relationships with global partners.”

John Graham, president of Chemroy, says: “We are confident in the success of this

acquisition, which is an exciting opportunity for our employees to join forces with an established global player in Azelis.” www.azelis.com

HIGHEST RESPONIBILITY

Quimidroga has again been awarded the distinction of Responsible Care RSE Certification of Responsible Company by the Business Federation of the Spanish Chemical Industry – Federación Empresarial de la Industria Química Española (FEIQUE).

“The adhesion to this programme is for us a motivation to achieve continuous improvement and to meet a series of actions that help us to be a better company,” says Quimidroga. “This certification further reinforces our commitment to compliance of the RSE policies and Sustainable Development.” www.quimidroga.com

LINTECH WINS ADITYA BIRLA DEAL

Aditya Birla’s Epoxy Business has appointed Lintech International as its exclusive US distributor, effective 1 April 2019. “We are excited about the opportunity to expand our relationship with Aditya Birla epoxy,” says Randy Waldman, vice-president of Lintech. “Expanding our relationship to a national coverage area as well as adding their curing agent products is a great addition to our product lines.”

“Lintech’s strong technical sales team, supported by extensive additive, resin and pigment product lines, gives us a strong distribution team across the US,” says Bill Buckley, vice-president of sales and marketing at Aditya Birla Epoxy Business, Americas. The products will include the EPOTEC® and CeTePox® epoxy resins, diluents and curing agents. www.lintechinternational.com

NEW LINE-UP AT DKSH

DKSH’s board of directors proposes to elect Marco Gadola, Dr Wolfgang Baier and Jack Clemons as new members of the board. The move follows the announcement by chairman Dr Joerg Wolle and three other long-standing board members that they will not stand for re-election at this year’s AGM.

“We are very pleased to propose three highly qualified candidates for election to our board,” says Adrian T Keller, honorary chairman of DKSH. “With their relevant international expertise in DKSH’s industries and markets, our company will be sustainably strengthened. If elected, Baier and Clemons will become part of the board with immediate effect, while Gadola will join the board on 1 January 2020, after handing over his responsibilities as CEO of Straumann Group. Until Marco Gadola’s proposal as chairman of DKSH at the AGM next year, I will stand for election for this term of office. I am looking forward to the work ahead of us. Both Marco Gadola and I will actively pursue DKSH’s strategy for future growth.” www.dksh.com

ACETO’S DISPOSALS

Aceto has entered into a ‘stalking-horse’ asset purchase agreement with an affiliate of New Mountain Capital, a leading growth-oriented investment firm. “For the past several months, the board has been conducting a comprehensive evaluation of strategic alternatives to address the company’s debt burden in consultation with its financial and legal advisors while continuing to work cooperatively with its lenders,” says William C Kennally III, CEO of Aceto.

“After assessing its options, the board has determined that court-supervised sales of Aceto’s chemicals business assets and its subsidiary, Rising Pharmaceuticals, are in the best interest of the company and its stakeholders. This decision provides stability and deep capital resources to the company and, importantly, ensures the continuity of customer, partner and supplier relationships critical to the company’s businesses operations and success.”

Aceto has already reached agreement to sell Rising Pharmaceuticals to Shore Suven Pharma, a joint venture between India-based Suven Life Sciences and Shore Pharma Investments, a company founded by Aceto board member Vimal Kavuru to acquire generic drug assets. www.aceto.com