Brenntag to expand food and nutrition business in China with acquisition of specialty ingredients distributor Zhongbai Xingye

Yaqi Liu, Managing Director of Zhongbai Xingye: "On behalf of Zhongbai Xingye, I extend a warm welcome to Brenntag. We are very pleased to become a part of the Brenntag family and to be such an important cornerstone in their expansion strategy. The food supplements industry has extraordinary potential worldwide and especially in China that we will leverage together." Yaqi Liu, Managing Director of Zhongbai Xingye: "On behalf of Zhongbai Xingye, I extend a warm welcome to Brenntag. We are very...

Yaqi Liu, Managing Director of Zhongbai Xingye: "On behalf of Zhongbai Xingye, I extend a warm welcome to Brenntag. We are very pleased to become a part of the Brenntag family and to be such an important cornerstone in their expansion strategy. The food supplements industry has extraordinary potential worldwide and especially in China that we will leverage together."

The 100% acquisition of the entire share capital of Zhongbai Xingye will be executed in two steps: The first tranche comprises a majority stake of 67%. The remaining 33% will be acquired by Brenntag by end of 2024.

Henri Nejade, Member of the Management Board of Brenntag Group and COO Brenntag Specialties, comments: "Headquartered in the capital of China, the company offers Brenntag the platform to extend our business of specialty food ingredients in the country." He further mentions the strong historical track record of the business: "Zhongbai Xingye results show strong growth rates over the years." The business will be settled within the global division of Brenntag Specialties.

The acquired business generated sales of approximately EUR 146 million over a twelve-months period up to June 2020. Closing of the first tranche is subject to certain contractual conditions and regulatory approvals and is expected to be completed in the first half of 2021. Closing of the second tranche is expected at the end of 2024.