Netherlands-based specialty chemicals players IMCD has increased its footprint in the Latin American market with the acquisition of the Brazil-based chemical distributor Makeni Chemicals.
IMCD has acquired a majority stake in the company, while it current owner, the Medrano family, will maintain a minority stake in the business, while Reinado Medrano will continue at the managing director of the operations.
“We are very excited to have the opportunity to join forces with such a reputable international player like IMCD as it will enable us to expand in Brazil and further strengthen our services to our suppliers and customers,” said Medrano.
Makeni focused on distribution of specialty chemicals in Brazil
The Makeni business is focused on the specialty chemicals market in Brazil, and as well as the personal care market, also serves the coatings, construction, adhesives, plastics and nutrition markets.
As well as a highly developed distribution network throughout the country, the business also includes a quality control laboratory, together with two application laboratories.
On top of this, the business has nine sales representative office throughout the country and has a main warehousing facility in Diadema, which is geared up to both bulk and liquid storage capabilities.
IMCD is focused on Latin American and global expansion
The Makeni business was founded in 1981 and is headquartered in Sao Paulo, employing a total of 100 staff, with yearly revenues in the region of BRL200m ($87.5m).
The acquisition serves as part of IMCD’s business strategy to expand globally, and more specifically to target the fast growing Latin America market for specialty chemicals.
“This is an important step in the realization of our strategy to develop in the largest country of Latin America and one of the leading economies in the world,” said Piet van der Slikke, CEO of IMCD Group.
IMCD expands into Australia
Back in August, IMCD announced that it had bought Sydney-based drug and food ingredient distributor Capitol Ingredients Australia to increase its access to local markets in the Australasia market.
The deal – terms of which were not disclosed – also provides company with a laboratory at which customers can conduct formulation development and testing.
Capitol’s core customer based is in Australia and New Zealand, which is where it will continue to focus after it is merged with the firm’s personal care unit and established as a separate division of IMCD ANZ.