Brenntag recently announced that it has entered a partnership with Al-Azzaz Chemicals Co. via a 75/25 joint venture. While Brenntag has been active in Saudi Arabia, this joint venture reportedly expands the company’s presence and footprint with one of the largest specialty chemicals distributors on the Arabian Peninsula.

Al-Azzaz Chemicals generated sales of €25 million (approximately $26.7 million) in its 2021 fiscal year. Closing of the transaction is expected to be completed in August 2022.

“Saudi Arabia is by far the largest market in the Middle East and a key market for Brenntag with a very attractive specialties chemical distribution market size and favorable geographic position in the region,” said Henri Nejade, member of the Brenntag Group management board and chief operating officer of Brenntag Specialties. “Therefore, I am excited to partner with Al-Azzaz Chemicals. This joint venture will further strengthen our position in the entire Middle East region.”

According to Fahad Al-Azzaz, CEO of Al-Azzaz Holding, owner of Al-Azzaz Chemicals, “Partnering with Brenntag’s global presence is a natural next step in our growth journey. We look forward to joining our experience and specialty expertise with Brenntag to deliver a better and tailored service to our customers.”

Anthony Gerace, managing director of Mergers & Acquisitions at Brenntag Group, highlighted the strategic opportunities of the deal. “This joint venture greatly expands our specialties chemical distribution footprint in the most important economic hubs in Saudi Arabia: Riyadh, Jeddah and Al-Khobar Dammam,” he said. “We look forward to bringing Brenntag’s global footprint and expertise to customers in the region.”

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