Engine Capital, an investment firm with a 1% stake in Brenntag, has become the second to advise the company to separate out its two businesses. PrimeStone, which owns 2%, had urged similar action in December, when Brenntag itself was in discussions with Univar Solutions about a possible merger.
Brenntag has revealed that it is collaborating with Chicago-based Project44 to create a platform via which all of its global tracking data, regardless of where shipments are and what mode is being used, will be fed into a single data management system.
The project, Brenntag said, will enable it to “enhance supply chain visibility and multiple value streams such as customer track-and-trace, analytical products and cost-efficient end-to-end supply chain planning”. Project44’s platform tracks more than 1 billion shipments/year for over 1,200 global companies in multiple industries.
Univar Solutions has confirmed that Brenntag has ended discussions with it about a potential merger. The company said that it is “committed to acting in the best interest of its stockholders and will continue discussions relating to other indications of interest that have been received with respect to a potential transaction”.
Brenntag originally opened discussions with Univar in November. The deal would have brought together the world’s largest and second largest chemical distributors. Brenntag and Univar had sales of €14.4 billion and $9.5 billion respectively in 2021.
Brenntag has opened a new 90,000 m2 facility in Zarate, Argentina, and simultaneously presented the renovation and expansion of its facilities in Nova Esperança in Brazil.
The Zarate site includes 500 m2 of offices, 2,000 m2 of warehouses, approximately 1,250 m2 of tank capacity, three tank truck unloading spaces, two drumming stations, a mix and blending building, and sustainable energy sources to operate the site. It will support both of Brenntag’s Specialties and Essentials businesses.
Following reports by Bloomberg, it has been confirmed that Brenntag and Univar Solutions have held preliminary discussions regarding a potential acquisition. Neither company has commented further beyond stressing that discussions are at an early stage and there is no certainty of completion.
The deal, if completed, would be Brenntag’s largest ever and would bring together the world’s largest and second largest chemical distributors. Brenntag and Univar had sales of €14.4 billion and $9.5 billion respectively last year.
At its latest capital markets day, distribution giant Brenntag announced ‘Strategy to Win’, its detailed strategic growth plan including new mid-term targets until 2026. It also unveiled a new brand identity. ‘Strategy to Win’ is the second phase of a planned “transformation journey”.
Brenntag has entered the Israeli market by acquiring distributor Y.S. Ashkenazi Agencies and its subsidiary Biochem Trading. The firm is the said to be the national market leader in personal care, and food and nutrition as well as one of the largest speciality chemical distributors. Terms were not disclosed and the deal has already been completed.
