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October 20, 2015
By: Kerry Pianoforte
Editor, Coatings World
Azelis Group and KODA Distribution Group announced that Azelis has signed a binding agreement to acquire U.S.-based KDG, significantly enhancing its position as a leading global specialty chemicals distributor. The transaction remains subject to regulatory clearances and is expected to be finalized by the end of 2015. This major acquisition by Azelis demonstrates its strong commitment to specialty chemicals and technical service, and its continued objective to grow this segment whilst adding value to its partners. KDG will become known as Azelis Americas, led by Frank Bergonzi, CEO and president of KDG who will assume the role as CEO and president of Azelis Americas and will become a member of the Azelis Board of Directors. Azelis Americas will continue to operate in the USA and Canada, using its existing business model and go-to-market strategy. It will maintain its regional brands and specialty chemicals sales to customers via industry verticals, and through dedicated experts. This move is seen as extremely positive by both sides with numerous opportunities to better serve customers and principals worldwide. Frank Bergonzi, CEO and president of KDG commented, “Being part of the Azelis Group will provide a strong platform for increased growth and widespread benefits of being part of a global organization with a regional focus. This agreement will allow us to be closer to our principals and engage with them on a global level, helping to facilitate new opportunities for our future development. It was of prime importance to find a forward thinking, dynamic partner that would enhance our reputation and commitment to providing unparalleled customer service via technical expertise, application laboratories and extensive market knowledge. The Azelis approach to the specialty chemicals market aligns extremely well with the KDG model. This partnership allows our management, staff and approach to customers and suppliers to remain unchanged.” Hans Joachim Müller, CEO Azelis commented, “The specialty chemicals market in North America is extremely important and the trend of suppliers moving their smaller accounts to specialty chemical distributors will continue for some time. As we got to know the team at KDG, it became clear that they share our values and we believe that they are an excellent partner to expand our business into the USA and build on our existing business in Canada. Our product portfolios are extremely complementary and demonstrate many synergies with principals, which is a paramount consideration in any acquisition. We are excited to welcome KDG to the Azelis Group.” Both companies have shown strong performances during 2015. KDG has demonstrated extensive growth both organically, and fuelled by recent acquisitions into new markets. Investment in laboratory facilities, new products and customer-facing employees over the last three years is helping to drive Azelis’ year on year growth of more than 10 percent in Europe and more than 15 percent in Asia Pacific.
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