Brenntag announced it has signed a purchase agreement to acquire 100% of Zhong Yung (International) Chemical Ltd. Brenntag will hold a majority stake of 51% and will acquire the remaining stake in 2016. This five-year joint venture reportedly allows Brenntag to use the experience of Zhong Yung and its management team to establish a solid business platform for Brenntag in China.
“This transaction strengthens Brenntag’s growth strategy in the Asia-Pacific region,” said Steve Holland, COO and designated CEO. “This acquisition is a strategic investment for Brenntag in China and also a first step through which Brenntag demonstrates full commitment to build a solid distribution network in China. We are continuing to look for further opportunities to support our growth in Asia Pacific.”
Zhong Yung is a major chemical solvent distributor and serves all major solvents-applied industries such as adhesives, coatings, printing inks, electronics, and automotives with a variety of solvent products. The company reportedly has a strong national sales organization covering north, east and south China, representing a large geographical coverage of the total domestic solvents market demand in China.
For more information, visitwww.brenntag.com.