Chemical and ingredients distribution company, Brenntag, has announced its acquisition of China’s Zhongbai Xingye Food Technology (Beijing) Co.
Brenntag plans to purchase the entire share capital of the speciality ingredients distributor, starting with a 67% stake at an enterprise value of around €90 million. The company will then acquire the remaining 33% by the end of 2024.
Zhongbai Xingye distributes a wide range of speciality food ingredients, including dairy products and proteins. The company generated sales of approximately €146 million over the 12-month period up to June 2020, according to Brenntag.
Brenntag aims to expand its food and nutrition business in China through the acquisition, describing the move as an “important step for our company to become a full-line distributor of food ingredients in the Asian market”.
Yaqi Liu, managing director of Zhongbai Xingye, added: “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.”
Henri Nejade, member of the management board of Brenntag Group and COO Brenntag Specialties, added: “Headquartered in the capital of China, the company offers Brenntag the platform to extend our business of speciality food ingredients in the country.”
The acquisition of the initial majority stake in Zhongbai Xingye is expected to be completed in the first half of 2021. Closing of the transaction is subject to contractual conditions and regulatory approvals.
Brenntag Food & Nutrition – a unit of Brenntag Group – recently opened a new food ingredients facility in Padua, Italy.
© FoodBev Media Ltd 2020
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