Germany’s Brenntag, the global market leader in chemical distribution, has signed a 51-49 joint venture with Tee Hai Chem Pte Ltd. Tee Hai Chem, headquartered in Singapore, is a strategic market leader in providing supply chain solutions for materials, chemicals and services for the Life Sciences, Electronics manufacturing and Research & Diagnostics sectors in Singapore and Southeast Asia.
The product portfolio consists of raw materials, consumables as well as high purity specialty chemicals. Other products include research and diagnostics chemicals, chemical delivery systems and maintenance, repair and operations (MRO) supplies. In addition, the company offers customisable supply chain solutions including external warehousing.
“Tee Hai has a leading market position in Singapore with long-lasting supplier and customer relationships. The location of its facilities in Singapore offers strategic advantages in proximity to customers, major ports and neighbouring growth markets,” says Henri Nejade, member of the Management Board of Brenntag Group and CEO of Brenntag Asia Pacific.
“Brenntag considers the joint venture as an important step into the most attractive industry groups in Singapore and beyond. This is a great opportunity to foster growth for Brenntag into key markets primarily for pharma and semiconductors. Moreover, entering into the joint venture will allow us to further develop the company through realising synergies with the existing supplier and customer base of Brenntag in the Asia Pacific region,” said Anthony Gerace, managing director, Mergers & Acquisitions at Brenntag Group.
“On behalf of my family, I am very pleased to welcome Brenntag as a significant shareholder in Tee Hai. We have built our business over the last five decades, and we look forward to growing even further with Brenntag as our partner. Our market-leading capabilities combined with Brenntag’s global reach will create unparalleled synergies that benefit our customers and business partners,” said Han Koon Juan, executive director of Tee Hai.
In 2018, the business reported total sales of approximately EUR 110.8 million (USD125.25 million). Completion of the transaction is expected to occur in the course of the next weeks, subject to contractually agreed closing conditions.
Founded in 1966, Tee Hai is a strategic market leader providing transformative supply chain solutions, including the procurement, sales and distribution of materials and chemicals, and the provision of services for the Life Sciences, Electronics and Research & Diagnostics sectors in Singapore and Southeast Asia. The company provides end-to-end capabilities to customers, via its sales & distribution, supply chain solutions and workforce solutions offerings. Tee Hai owns two innovative, state-of-the-art facilities, including the largest purpose-built standalone GxP-compliant facility in Singapore and Southeast Asia for the life sciences industry, and the largest facility for high volume, fast turnaround logistics operations in Singapore for the electronics industry.