German chemical distributor Brenntag (Essen; www.brenntag.com) intends to achieve its future growth primarily through strategic mergers and acquisitions. The company recently announced the same, stating that planned expenditures for mergers and acquisitions would be doubled to between EUR 400 mn and EUR 500 mn.

Last year, Brenntag had spent a total of around EUR 440 mn on the acquisition of six companies. However, a spokesperson told Plasteurope.com that this sum was “exceptionally high, driven by opportunity” and that the annual budget for M&A activities has normally been between EUR 200 mn and EUR 350 mn.

Above all, Brenntag sees future growth potential in the areas of life science and material science. Target industries for acquisitions include the nutrition and personal care sectors, as well as the construction industry.

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The group, under the leadership of CEO Christian Kohlpaintner, currently sees itself in a position of strength. A turnover of EUR 5.1 bn was generated in the third quarter of 2022. Operating EBITDA was just under EUR 460 mn. This was an increase of 22% compared to the “already strong” corresponding quarter of the previous year, Brenntag announced.

Since January 2021, the company has been managed in two global business units, Brenntag Essentials and Brenntag Specialties. In the third quarter of 2022, the growth in operating EBITDA of the Specialties division (which includes trading in standard and high-performance polymers and additives) was up 18% compared to the same quarter of the previous year, significantly behind the increase at Brenntag Essentials (up 30%). According to the company, the development in that area was driven almost exclusively by organic growth in EMEA, North America and Latin America.