We’re pleased to announce that the packed chemicals business of Industrial Chemicals Group has been acquired by global distributor Brenntag, in a deal led by our Corporate Finance team.
The independent family-owned manufacturer, which turns over in excess of £125 million, has disposed of the non-core subsidiary to German group Brenntag as it looks to fuel future growth. The strategic sale will provide the group with a platform for growth and investment as it looks to expand its operations, which includes nine sites across the UK in addition to one in the United States.
The sale process was led by Corporate Finance Partner Chris Adlam and a team including Joanne Price, Matt Field, Rob Whitefoot and James Cooper. We were engaged as lead advisers to manage all aspects of the transaction due to the team’s track record and experience in managing complex deals to a successful conclusion. The deal included advice from across our corporate finance, tax and advisory teams. Mills & Reeve acted as legal advisers on the deal.
Grays-headquartered Industrial Chemicals Group was founded in 1976 and has since grown to manufacture and distribute more than a million tonnes of specialist chemicals to its global client base every year. Its products are used in sectors including agriculture, water utilities, steel production, pharmaceuticals and homecare products, with customers ranging from large internationals to small family-owned businesses. Brenntag operates a global network with more than 640 locations in 77 countries.
Steven Swaby, Finance Director at Industrial Chemicals Group, said: “This strategic sale represents an opportunity to further grow the wider business, with the funds generated providing capital to fuel our long-term growth objectives. We are very grateful for the support of the FRP team which was invaluable in leading us through a complex transaction process.”
Chris Adlam, Corporate Finance Partner at FRP, said: “It was a pleasure to work with both Industrial Chemicals Group and the whole Mills & Reeve team. The deal provides the business with a platform for substantial growth and investment into new areas. As we head into a period of expected market consolidation, the global appetite for high quality UK based companies remains strong and will continue to fuel strategic growth opportunities for businesses operating here.”