Brenntag to partner with Al-Azzaz Chemicals in Saudi Arabia
Brenntag, based in Essen, Germany, announced a partnership with Saudi Arabia’s Al-Azzaz Chemicals Company via a 75-25 joint venture. This joint venture greatly expands the global chemical distributor’s presence and footprint in the Arabian Peninsula.
Closing of the transaction is expected to be completed until August 2022.
“Saudi Arabia is by far the largest market in the Middle East and a key market for Brenntag with a very attractive specialties chemical distribution market size and favorable geographic position in the region,” said Henri Nejade, member of the Management Board of Brenntag Group and COO of Brenntag Specialties.
“Partnering with Brenntag’s global presence is a natural next step in our growth journey,” said Fahad Al-Azzaz, CEO of Al-Azzaz Holding, owner of Al Azzaz Chemicals. “We look forward to joining our experience and specialty expertise with Brenntag to deliver a better and tailored service to our customers.”
Al-Azzaz Chemicals Company, established in 1984, is a distributor of specialty chemicals in Saudi Arabia. The company’s key markets are the Food and the Pharmaceutical industries, Plastics and Material Science additives and Petrochemicals. Al-Azzaz Chemicals generated sales of EUR25 million (USD26.6 million) in the financial year 2021.
“This joint venture greatly expands our specialties chemical distribution footprint in the most important economic hubs in Saudi Arabia: Riyadh, Jeddah and Al-Khobar Dammam. We look forward to bringing Brenntag’s global footprint and expertise to customers in the region,” said Anthony Gerace, managing director, Mergers & Acquisitions, Brenntag Group.
Brenntag’s alliance in Saudi Arabia is represented through Trychem FZCO, the UAE-based joint venture of which Brenntag acquired a majority stake in 2015. The company, originally active in essential chemicals, such as solvents & blends in UAE and the Gulf Cooperation Council (GCC) countries, has meanwhile expanded to also cover the specialty chemicals business in the region with a focus on Lubricants, Food, Coatings and Construction.