Brenntag closes successful year 2006
Constant growth and significant changes
Brenntag succeeded in strengthening its global footprint as the world’s leading chemical distributor in 2006 by recording external sales of EUR 6.1 billion (US$ 7.6 billion): an increase of 15%. Earnings before interest, taxes, depreciation and amortization (EBITDA operating) increased by 20%.
Brenntag’s Chief Executive Officer Stephen R. Clark: “We are pleased with the performance and the continuous expansion of the company. Brenntag reflects on 2006 as yet another successful chapter in its long history. In 2006 we accomplished the change in private equity ownership from Bain Capital to BC Partners without any disruption to the business. BC Partners has stepped in to continue its support and encouragement for executing our growth plans with a long term view of creating value. We completed a number of acquisitions to expand our presence in different industries, product areas and geographic regions. While completing these undertakings, the professional hard-working people that make up the heart of Brenntag in every country continued to execute our successful growth strategy around the globe”.
In May 2006 Brenntag significantly strengthened its European distribution network by completing the acquisitions of Albion Chemical Group and Schweizerhall Chemie AG. Schweizerhall Chemie AG, the leader in the Swiss chemical distribution market, and Albion Chemical Group, a leading distributor of chemicals in the UK and Ireland, were key to achieving full-coverage market leadership in Europe.
Brenntag’s 2006 growth in the European market was not only based on selected acquisitions. In France Brenntag enhanced its market position by the opening of a new state-of-the-art logistics center in Montville, where the installation of an advanced mixing and blending facility with a capacity of 3,000 m˛ enables Brenntag to provide a link between suppliers and customers for an ever growing list of products.
Accelerated growth in North America was one of the Group’s major targets. In March 2006 Brenntag purchased 100% of the shares of Los Angeles Chemical, South Gate, California, which meant a substantial transformation of its capabilities in the western United States. In September 2006 Brenntag acquired the Canadian chemical distributor Wil-Chem Specialty Chemicals, Alberta, and therewith achieved a higher presence in the expanding oil and gas production chemicals sector.
Brenntag strengthened its leading position in the Latin American chemical distribution market with a stable and solid performance. During the course of the year 2006, Brenntag Latin America secured several important distribution agreements with major global producers thereby expanding the product and customer portfolios. In addition to this, Brenntag in Mexico expanded into a full line distributor and is expected to grow significantly in the near future. To take advantage of the agricultural boom in Brazil, Brenntag started to operate a new modern liquid specialty fertilizer blending facility located at the Guarulhos distribution center in Sao Paulo.
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