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    Breaking News

    Brenntag Acquires Chinese Specialty Chemicals Distributor Wellstar Group

    ...

    Brenntag Acquires Chinese Specialty Chemicals Distributor Wellstar Group
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    06.29.17
    Chemical distributor, Brenntag has signed an agreement to acquire in two steps 100 percent of the shares in specialty chemical distributor Wellstar Enterprises Company Limited, Hong Kong, and its three Chinese subsidiaries, jointly 'Wellstar Group'.

    Brenntag will gain a majority stake of 51 percent with a first tranche in 2017 and the remaining 49 percent 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.

    Wellstar Group is headquartered in Hong Kong with its three 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.

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