Displaying items by tag: Brenntag

Brenntag (ISIN DE000A1DAHH0), the global market leader in chemicals and ingredients distribution, has expanded its distribution agreement with Elementis Specialties to distribute their specialty chemicals and additives for the coatings, adhesive and sealant industries in India, Nepal, Sri Lanka and the Philippines. 

Brenntag expands distribution agreement with Elementis in Asia Pacific Image: Brenntag Brenntag expands distribution agreement with Elementis in Asia Pacific Image: Brenntag Sanjay Karkhanis, President Materials Science, Brenntag Asia Pacific says: “We are excited to strengthen our strategic partnership with Elementis in these four countries as its products fit well into our existing product portfolios and will enable us to develop more value-adding solutions in coatings systems for our customers in each local market. This continues to build our longstanding partnership with Elementis, with whom we have been working with for more than 15 years in Asia Pacific.”

“Brenntag is our partner in many regions, and we look forward to expanding this relationship to the important markets in India, Nepal, Sri Lanka and the Philippines for all our end-users,” Valerio Cittadini – Director Coatings EMEIA, Elementis Specialties explained. “We are particularly excited about the experienced leadership, strong sales team, technical capabilities, and broad geographical footprint that makes up the Brenntag value proposition.”

This distribution agreement between Brenntag and Elementis will be effective starting April 1, 2022.

About Brenntag:

Brenntag is the global market leader in chemicals and ingredients distribution. The company holds a central role in connecting customers and suppliers of the chemical industry. Headquartered in Essen, Germany, Brenntag has more than 17,000 employees worldwide and operates a network of about 700 sites in 78 countries. In 2021, Brenntag generated sales of around 14.4 billion EUR. The two global divisions, Brenntag Essentials and Brenntag Specialties, provide a full-line portfolio of industrial and specialty chemicals and ingredients as well as tailor-made application, marketing and supply chain solutions, technical and formulation support, comprehensive regulatory know-how, and digital solutions for a wide range of industries. In the field of sustainability, Brenntag pursues specific goals and is committed to sustainable solutions in its own sector and the industries served. Brenntag shares have been listed at the Frankfurt Stock Exchange since 2010, initially in the MDAX and since September 2021 in the DAX. In addition, the Brenntag SE shares are listed in the DAX 50 ESG and DAX ESG Target. For more information, visit www.brenntag.com

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Brenntag (ISIN DE000A1DAHH0), the global market leader in chemicals and ingredients distribution, reports outstanding results in the third quarter 2021 in still persisting exceptional market conditions. Both divisions continue to deliver strong results with Brenntag Specialties in particular showing an excellent performance. The company’s transformation program Project Brenntag progresses according to plan and already contributed around 70 million EUR of additional operating EBITDA since the inception of the program.

Christian Kohlpaintner, Chief Executive Officer of Brenntag SE, said: “In the third quarter of 2021, Brenntag achieved outstanding results with both our two global divisions Brenntag Essentials and Brenntag Specialties contributing strongly to this performance. The unusual and challenging market conditions continued in Q3, and we expect to see them persisting well into 2022. To secure availability of products and keeping customers operating remain key priorities for Brenntag in this environment. We want to thank all our employees for their great performance and strong commitment in these special times.” 

brenntag logoIn the third quarter 2021, Brenntag generated sales of 3,738.2 million EUR. Operating gross profit rose by 23.7% to 862.3 million EUR compared to 695.2 million EUR in previous year’s quarter. Operating EBITDA reached  342.9 million EUR, a strong year-on-year increase of 29.7%. Earnings per share totaled 1.02 EUR compared to 0.76 EUR a year ago which is an increase of 34%.

Georg Müller, Chief Financial Officer of Brenntag SE, said: “In the third quarter 2021, Brenntag continued on its successful path. While we achieved strong results in both of our global divisions, we are particularly delighted about the development of our Earnings per Share, which rose strongly by more than 34% to 1.02 EUR compared to 0.76 EUR in the third quarter 2020.” 

Both divisions continue to deliver strong results

In the third quarter, Brenntag Essentials again showed a strong performance. In line with the long-term expectations, Brenntag Specialties grew stronger than Brenntag Essentials and delivered excellent results. 

The Brenntag Essentials division which markets a broad portfolio of process chemicals across a wide range of industries again delivered strong results in  the third quarter 2021. The division reached an operating gross profit of 520.2 million EUR (+19.5%). Operating EBITDA increased by 28.7% to 210.3 million EUR compared to the prior-year period. The EMEA, Latin America and particularly North America regions contributed to this positive performance. The business development in Asia Pacific was severely impacted by renewed and strict COVID-19 lockdowns in countries such as Thailand, Vietnam, and Indonesia, as well as dual control measures in China to reduce specific energy consumption and greenhouse gas emissions.

The Brenntag Specialties division which builds on Brenntag’s position as the largest specialty chemicals distributor worldwide, again delivered excellent results in third quarter 2021. The division achieved an operating gross profit of 334.3 million EUR (+30.1%). Operating EBITDA rose by 42.3% to 152.9 million EUR compared to the previous year’s quarter. These remarkable results are due to a broad-based positive performance across all focus industries. In the Americas region, Brenntag Specialties showed particularly strong results. 

Project Brenntag makes very good progress

The implementation of the comprehensive transformation program Project Brenntag is going according to plan and makes very good progress since the launch of the new operating model in January 2021. Since its inception, Project Brenntag already contributed around 70 million EUR of additional operating EBITDA which is expected to ramp up to 220 million EUR annually by 2023. Additionally, the optimization of Brenntag's global site network is ongoing. Of the around 100 planned site closures, 68 have been completed to date. Furthermore, since the initiation of the program, more than 740 jobs have structurally been reduced out of approximately 1,300 planned over two years in a socially responsible manner. Brenntag is in close dialogue with the works councils in the different countries.

Chief Financial Officer Georg Müller not to extend his mandate

Georg Müller, Brenntag's long-standing Chief Financial Officer, has informed the Supervisory Board that he will not extend his mandate beyond his current term ending March 2022. Georg Müller has been a constant for the company holding various management positions over the last almost 20 years, thereof ten years as CFO. Brenntag is, also thanks to his work, the global market leader in chemicals and ingredients distribution. In particular, he contributed extensively over many years to Brenntag’s financial strength and its excellent reputation in the equity and debt capital markets. The Supervisory Board is currently conducting a structured and thorough succession process.

Outlook confirmed despite critical disruptions in global supply chains

Brenntag confirms its operating EBITDA guidance to be in the range of 1,260 million to 1,320 million EUR for the financial year 2021 (previously: 1,160 million to 1,260 million EUR). The guidance was raised twice this year, and takes into account organic growth, the expected efficiency gains from Project Brenntag, and the contribution to earnings from already closed acquisitions at the time of the guidance increase. It is based on the assumption that exchange rates will remain stable on the level at the time of the guidance upgrade. Brenntag expects the exceptional and challenging market conditions persisting well into 2022.

*Operating gross profit is defined as sales less cost of goods sold.
**Unless indicated otherwise, growth rates are on a constant currency basis.
***Brenntag presents operating EBITDA before holding charges and special items. Holding charges are certain costs charged between holding companies and operating companies. At Group level, these effects net to zero. Brenntag is also adjusting operating EBITDA for income and expenses arising from special items so as to improve comparability in presenting the performance of its business operations over multiple reporting periods and explain it more appropriately. Special items are income and expenses outside ordinary activities that have a special and material effect on the results of operations, such as restructurings.

About Brenntag:

Brenntag is the global market leader in chemicals and ingredients distribution. The company holds a central role in connecting customers and suppliers of the chemical industry. Headquartered in Essen, Germany, Brenntag has more than 17,000 employees worldwide and operates a network of more than 670 sites in 77 countries. In 2020, Brenntag generated sales of around 11.8 billion EUR. The two global divisions, Brenntag Essentials and Brenntag Specialties, provide a full-line portfolio of industrial and specialty chemicals and ingredients as well as tailor-made application, marketing and supply chain solutions, technical and formulation support, comprehensive regulatory know-how, and digital solutions for a wide range of industries. In the field of sustainability, Brenntag pursues specific goals and is committed to sustainable solutions in its own sector and the industries served. Brenntag shares have been listed at the Frankfurt Stock Exchange since 2010, initially in the MDAX and since September 2021 in the DAX. In addition, the Brenntag SE shares are listed in the DAX 50 ESG and DAX ESG Target. For more information, For more information, visit www.brenntag.com

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Brenntag, the global market leader in chemicals and ingredients distribution, forms a distribution agreement with NXTLEVVEL Biochem to expand its growing Household, Industrial, & Institution (HI&I) portfolio in providing sustainable biobased solvents in North America.

This current agreement covers a new product line including the below product names and consists of levulinates and levulinate ketals. These products are all biobased solvents offering high performance and improved safety and sustainability:

  • NXT SOLV 100
  • NXT SOLV 200
  • NXT SOLV 300
  • NXT SOLV 400

Brenntag forms distribution agreement with biobased solvents experts NXTLEVVEL Biochem. Image: BrenntagBrenntag forms distribution agreement with biobased solvents experts NXTLEVVEL Biochem. Image: Brenntag

“We are excited to have the opportunity to bring a new innovative solution to our customers from NXTLEVVEL. Having a sustainable alternative solvent will allow our customers to better meet the increasing consumer demands for sustainable cleaning products,” said Jeffrey M. Carey, Ph.D. Vice President HI&I Americas.

These biobased products can reduce dependence on fossil fuels and play a role in reducing carbon emissions. They are used in applications such as hard surface cleaners, floor cleaners, and laundry detergents.

“I’m very excited that NXTLEVVEL and Brenntag are embarking on a relationship to promote our range of biobased solvents in the HI&I industry by leveraging the strength of our technology along with Brenntag’s market-leading position,” commented Aris de Rijke, CEO of NXTLEVVEL Biochem. “NXTLEVVEL’s technology is highly innovative, proprietary and, for the first time, allows the production of levulinate derivatives at industrial scale. The cornerstone is the patented biomass-derived levulinic acid technology and its esters enabling the affordable production of biobased solvents and other biobased chemicals,” de Rijke notes.

About Brenntag:

Brenntag is the global market leader in chemicals and ingredients distribution. The company holds a central role in connecting customers and suppliers of the chemical industry. Headquartered in Essen, Germany, Brenntag has more than 17,000 employees worldwide and operates a network of more than 670 sites in 77 countries. In 2020, Brenntag generated sales of around 11.8 billion EUR. The two global divisions, Brenntag Essentials and Brenntag Specialties, provide a full-line portfolio of industrial and specialty chemicals and ingredients as well as tailor-made application, marketing and supply chain solutions, technical and formulation support, comprehensive regulatory know-how, and digital solutions for a wide range of industries. In the field of sustainability, Brenntag pursues specific goals and is committed to sustainable solutions in its own sector and the industries served. Brenntag shares have been listed at the Frankfurt Stock Exchange since 2010, initially in the MDAX and since September 2021 in the DAX. In addition, the Brenntag SE shares are listed in the DAX 50 ESG and DAX 50 ESG Target. For more information, visit www.brenntag.com.

About NXTLEVVEL:

A privately held company headquartered in The Netherlands, NXTLEVVEL is a commercial scale manufacturer of next generation biomass-derived chemicals. As a joint venture formed in 2018, NXTLEVVEL brings together the industrial expertise of the Towell Engineering Group (Sultanate of Oman) with advanced technology developed by GFBiochemicals. GFBiochemicals was founded in 2008 and holds 200 patents for its world leading proprietary technology in bio-solvents, polyols, and plasticizers based on levulinic acid. Levulinic acid is considered a key biobased building block that enables the production of an extensive portfolio of derivatives. For more information, visit www.nxtlevvel.com

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Brenntag, the global market leader in chemicals and ingredients distribution, acquires all operating assets and business of Matrix Chemical, LLC (“Matrix”). The company is a solvents distributor and the largest distributor of acetone in North America with sales of around USD 200 million year to date in 2021.

brenntag logoSteven Terwindt, Member of the Management Board of Brenntag SE and COO Brenntag Essentials, comments: “With the acquisition of Matrix we create a highly reliable and competitive logistics network for acetone and solvents in North America that allows us to take advantage of market opportunities and to deliver a variety of core products to our customers more efficiently, economically and in a more sustainable manner. Overall, we expect significant operating synergies by leveraging Matrix’s supplier relationships, logistics network and bulk storage capacity in combination with Brenntag’s existing North American infrastructure and outbound logistics.”

The company distributes acetone and other solvents to customers throughout the United States and Canada. These products are used in various industries such as personal care, adhesives, and the paint and coatings industry. Matrix operates storage tanks at bulk terminals in Houston (Texas), Chicago (Illinois), Vanport (Pennsylvania), and Wilmington (North Carolina).

Anthony Gerace, Managing Director Mergers & Acquisitions at Brenntag SE, on the strategic opportunities of the acquisition: “Matrix and its terminals in the United States perfectly complement our existing network in the region. The acquisition is strategically aligned with our growth strategy in North America as it creates substantial additional acetone capacity in key geographic areas at advantaged barge economics. The combined network will improve our geographic coverage and operating efficiency and allow us to better serve our customer and supply partners alike.”

Closing and signing of the acquisition occurred simultaneously. 

About Brenntag:

Brenntag is the global market leader in chemicals and ingredients distribution. The company holds a central role in connecting customers and suppliers of the chemical industry. Headquartered in Essen, Germany, Brenntag has more than 17,000 employees worldwide and operates a network of more than 670 sites in 77 countries. In 2020, Brenntag generated sales of around 11.8 billion EUR. The two global divisions, Brenntag Essentials and Brenntag Specialties, provide a full-line portfolio of industrial and specialty chemicals and ingredients as well as tailor-made application, marketing and supply chain solutions, technical and formulation support, comprehensive regulatory know-how, and digital solutions for a wide range of industries. In the field of sustainability, Brenntag pursues specific goals and is committed to sustainable solutions in its own sector and the industries served. Brenntag shares are listed at the Frankfurt Stock Exchange and are included in the MDAX and DAX 50 ESG. For more information, visit www.brenntag.com

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Brenntag, the global market leader in chemicals and ingredients distribution, made further important steps in strengthening its business in China with the closing of two acquisitions within its Specialties division. On July 23, the acquisition of the first tranche (67%) of food ingredients specialist Zhongbai Xingye has been closed. The closing of the second tranche and thus the full acquisition of Zhongbai Xingye is expected to be completed by the end of 2024. In addition, end of June, Brenntag has completed the acquisition of pigments and additives specialist Wellstar Group by acquiring the remaining 49% of shares of the joint venture.

brenntag logoHenri Nejade, Member of the Management Board of Brenntag SE and COO Brenntag Specialties, comments: “Strengthening our Brenntag Specialties division, particularly in China, as well as in the Asia Pacific region in general, is a central pillar of our company’s M&A strategy. I am particularly delighted that we stuck exactly to our timing in both cases and were able to successfully close the important acquisition steps in the dynamic and growing Asian markets as planned.”

The Chinese company Zhongbai Xingye is dedicated to the distribution of a wide range of specialty food ingredients, including dairy products and proteins. The acquisition of the leading player in mainland China is an important step for Brenntag to become a full-line distributor of food ingredients in the Asian market. Closing of the second tranche is expected at the end of 2024. 

The Wellstar Group is headquartered in Hongkong and operates three subsidiaries in Mainland China located in Shenzhen, Guangzhou, and Shanghai. Since Brenntag acquired a majority stake of 51% with a first tranche in August 2017, the business was operated and successfully developed as a joint venture servicing a broad range of industries. With the closing of the second tranche, the Wellstar Group is 100% owned by Brenntag.

About Brenntag:

Brenntag is the global market leader in chemicals and ingredients distribution. The company holds a central role in connecting customers and suppliers of the chemical industry. Headquartered in Essen, Germany, Brenntag has more than 17,000 employees worldwide and operates a network of more than 670 sites in 77 countries. In 2020, Brenntag generated sales of around 11.8 billion EUR. The two global divisions, Brenntag Essentials and Brenntag Specialties, provide a full-line portfolio of industrial and specialty chemicals and ingredients as well as tailor-made application, marketing and supply chain solutions, technical and formulation support, comprehensive regulatory know-how, and digital solutions for a wide range of industries. In the field of sustainability, Brenntag pursues specific goals and is committed to sustainable solutions in its own sector and the industries served. Brenntag shares are listed at the Frankfurt Stock Exchange and are included in the MDAX and DAX 50 ESG. For more information, visit www.brenntag.com.

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The Management Board and the Supervisory Board of Brenntag AG (ISIN DE000A1DAHH0), the global market leader in chemical and ingredients distribution, decided about the scope of Project Brenntag, the company’s comprehensive transformation program, that is expected to deliver a sustainable annual contribution of additional operating EBITDA of 220 million EUR in total, which will increase year by year to the full annual potential already by beginning of 2023. The program is designed to further expand Brenntag’s global market leading position through an increased focus, reduced complexity, and even stronger partnerships with customers and suppliers. Starting in January 2021, the company will be steered in two global divisions with a strong focus on changing customer and supplier needs: Brenntag Essentials and Brenntag Specialties. As part of the transformation, Brenntag will invest in optimizing its global site network and improve its utilization.

  • Transformation program “Project Brenntag” to deliver additional operating EBITDA contribution of 220 million EUR in total, which will increase year by year to the full annual potential already by beginning of 2023
  • Significant investments in optimizing the global site network to improve utilization 
  • Reduction of about 1,300 jobs globally intended and to be carried out in a socially responsible manner over the next two years
  • Total net cash outflow of around 370 million EUR by 2023
  • Christian Kohlpaintner, Chief Executive Officer Brenntag Group: “We are determined to sustainably strengthen our global leading position. With Project Brenntag we take decisive action and will ensure consistent execution of our transformation journey.”

Christian Kohlpaintner, Chief Executive Officer Brenntag Group, said: “With our transformation program Project Brenntag, we take decisive action to create the strong basis for sustainable organic earnings growth in the coming years. The introduction of our new operating model was a first important milestone to cope with future requirements and stay at the top of our industry. To harvest our full potential, it is crucial to become leaner and more efficient. The implementation of the various measures of Project Brenntag will also include an adjustment of our global workforce. This step will be anything but easy for us, but it is necessary to ensure Brenntag’s success in the long-term. We intend to perform any planned reductions in a socially responsible manner and strive to avoid compulsory redundancies.”

brenntag logo large

Significant operating EBITDA uplift 

The Group expects Project Brenntag to deliver a sustainable annual contribution in additional operating EBITDA of 220 million EUR in total, which will increase year by year to the full annual potential already by beginning of 2023. The total net cash outflow to incur in course of the implementation of Project Brenntag is expected to amount to around 370 million EUR. Project Brenntag will lead to significant efficiency gains and will contribute to top-line growth as well. 

Brenntag expects the implementation of the various measures over the next two years to lead to a reduction of approximately 1,300 jobs in total out of its workforce of about 17,500 employees worldwide, of which a reduction of less than 200 jobs is expected to impact Germany. Brenntag plans to use natural fluctuation, mutually agreed separation, and regular and early retirement schemes to perform the adjustments in a socially responsible manner and strives to avoid compulsory redundancies. The measures will be further elaborated over the coming months in line with local rules and labor regulations. Brenntag will maintain a close and trusting dialog with employee representatives and follow the appropriate information and consultation procedures in the concerned countries.


Consolidated global network of sites with increased proximity to customers

To become leaner and more efficient, Brenntag will invest significantly in its site network to support customers faster, broader, and better. While maintaining its global reach, with the optimized network Brenntag will improve efficiency, leverage scale benefits across divisions and products, and increase proximity to business partners. The optimization envisions closing sites to consolidate the site network in geographies and improve the utilization of existing sites. Brenntag plans to close about 100 sites across all regions, half of which are Third-Party Logistics Sites. At the same time, the Group will invest into existing and new sites, create regional hubs, and close white spots in the network. 

New leadership culture with clearly defined accountabilities

In line with the operating model, Project Brenntag also entails new roles and clearly defined accountabilities and responsibilities. It includes a new leadership structure, starting with the composition of the Management Board and the top leadership team. The competences and skills needed for the transformation have been defined, and Brenntag will invest significantly in training to enable its employees to bring in their strengths and expertise in the best possible way.

Note:

Further details regarding the transformation of Brenntag Group and "Project Brenntag" will be presented at a Capital Markets Update on November 4, 2020.

About Brenntag:

Brenntag is the global market leader in chemical and ingredients distribution. We connect our suppliers and customers in value-adding partnerships. Our almost 17,500 employees provide tailor-made application, marketing and supply chain solutions. Technical and formulation support, market, industry and regulatory expertise as well as advanced digital tools are just some examples of our services that are aiming to create an excellent customer experience. Our full-line portfolio comprises specialty and industrial chemicals and ingredients of a world-class supplier base. Building on its long-standing experience, unmatched global reach and local excellence, Brenntag works closely alongside its partners to make their business more successful. We are committed to contribute towards greater sustainability in our own business and the industries we serve, and to achieve sustainable profitable growth. Headquartered in Essen (Germany) and with regional headquarters in Philadelphia, Houston and Singapore, Brenntag operates a unique global network with more than 640 locations in 77 countries. The company generated sales of EUR 12.8 billion (USD 14.4 billion) in 2019. Brenntag shares are traded at the Frankfurt Stock Exchange (BNR).

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Brenntag, the global market leader in chemical distribution, has signed an agreement to acquire in 2 steps 100% of the shares in specialty chemical distributor Wellstar Enterprises (Hong Kong) Company Limited, Hong Kong, and its 3 Chinese subsidiaries, jointly “Wellstar Group”.

brenntag logoBrenntag will gain a majority stake of 51% with a first tranche in 2017 and the remaining 49% via the second tranche by 2021. In the period from 2017 to 2021, the business will be operated as a joint venture. Wellstar Group focuses on the distribution of specialty pigments, resins and additives mainly across China.

Henri Nejade, Member of the Management Board of Brenntag Group and CEO Brenntag Asia Pacific: “The acquisition perfectly fits into Brenntag’s growth strategy in the Asia Pacific region. Wellstar Group represents a competent and well established specialty chemicals organization. The company has an experienced sales team with broad experience in the relevant industry and offers strong technical competency and support to customers. The investment thus complements Brenntag China’s objective to build up a specialty chemical division for various industry segments, i.e. Coatings and Personal Care.”

Wellstar Group is headquartered in Hong Kong with its 3 Mainland China subsidiaries located in Shenzhen, Guangzhou and Shanghai. The company sells and distributes high performance pigments, effect pigments, resins and kaolin used in a broad variety of industries among others in the coatings, inks, plastic and cosmetics industry. In addition, Wellstar Group offers value-added services through an application lab for coatings.

Anthony Gerace, Managing Director Mergers & Acquisitions at Brenntag Group: “Brenntag considers the joint venture as well-positioned to grow on the back of favourable market trends, such as the growth in automotive industry in China. Moreover, the acquisition gives us the opportunity to strengthen our relationship with a strategic key supplier, and we see synergy potential with our existing Brenntag China’s customer base.”

In 2016, the business generated total sales of approximately 27.6 million EUR. Closing of the first tranche is expected to occur in the course of the next weeks, subject to contractually agreed closing conditions.

About Brenntag:
Brenntag, the global market leader in chemical distribution, covers all major markets with its extensive product and service portfolio. Headquartered in Mülheim an der Ruhr, Germany, the company operates a global network with more than 550 locations in 74 countries. In 2016, the company, which has a global workforce of around 15,000 employees, generated sales of EUR 10.5 billion (USD 11.6 billion). Brenntag connects chemical manufacturers and chemical users. The company supports its customers and suppliers with tailor-made distribution solutions for industrial and specialty chemicals. With over 10,000 products and a world-class supplier base, Brenntag offers one-stop-shop solutions to around 185,000 customers. This includes specific application technology, an extensive technical support and value-added services such as just-in-time delivery, product mixing, formulation, repackaging, inventory management and drum return handling. Long-standing experience and local excellence in the individual countries characterize the global market leader for chemical distribution.

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