Brenntag has signed an agreement to enter into a 65/35 joint venture with Raj Petro Specialities Pvt Ltd, India. The company, headquartered in Mumbai and Chennai, distributes its own-blended brands of petroleum-related products to diverse customer industries in India and other countries in Asia Pacific as well as in Africa and the Middle East.
Brenntag will gain a majority stake of 65 percent with a first tranche to be closed in April 2018 and the remaining 35 percent via the second tranche after a period of 5 years, in which the business will be operated as a joint venture, with possible extension of additional 1-2 years.
Steven Holland, CEO of the Brenntag Group said, “For Brenntag, the acquisition of Raj is a further step into the Indian chemical distribution market which is the 7th largest globally for chemicals and 3rd largest for lubricants. Raj’s existing product portfolio and market presence, capability of its infrastructure and strategic locations make it a compelling investment target to expand our footprint not only in India but also in other Asian Pacific countries, in Africa and the Middle East.”
Raj’s portfolio contains own-blended petroleum-related products, servicing a variety of different product groups, namely transformer oils, white oils and paraffins, petroleum jelly, process oils, waxes and solvents as well as industrial and automotive lubes.
The business is expected to generate total sales of approximately EUR 180 million in the financial year 2017/18 ending March 31, 2018. Closing of the first tranche with 65 percent is expected at April 1, 2018, subject to contractually agreed closing conditions.
