Brenntag to acquire Chemgrit Group to expand personal care footprint in South Africa

08 Sep 2023 --- Chemicals and ingredients distribution giant Brenntag has announced it will acquire the operating business of Chemgrit Group headquartered in Johannesburg, South Africa. The closing, subject to customary conditions, is expected in the fourth quarter of this year.

Chemgrit is an independent specialty chemicals distributor with a focus on personal care. 

According to Brenntag, personal care is one of the fastest-growing market segments in South Africa and sub-Saharan Africa. The acquired personal care and cosmetics operations are “market-leading with excellent coverage in South African markets.”

The addition provides customers with value-added services from a dedicated application laboratory, including mixing, refilling, redistribution and delivery, formulating and testing materials and products, and other technical support.

Personal care in South Africa
Brenntag Specialties will integrate Chemgrit’s personal care operations into its business unit personal care & HI&I. The combined businesses will accelerate growth in cosmetics and extend the application and technical support services to HI&I cleaning customers.

Brenntag will expand its personal care and cosmetics presence in South Africa.“With this acquisition, we execute Brenntag’s ‘Strategy to Win’ and enrich the capabilities, scope and scale for Brenntag Specialties in Southern Africa,” says Michael Friede, CEO at Brenntag Specialties.

“Chemgrit’s cosmetics focus perfectly complements our existing national food and pharma business in life science and supports our ambition to achieve an ever-stronger position with a comprehensive offering in South Africa and beyond.”

“The enlarged Brenntag Specialties business in South Africa will be scaled to other African markets, adding to Brenntag’s current African presence with local entities in Maghreb, Ghana, Nigeria, East Africa, Mauritius and South Africa,” adds Michael Thomson, president at Brenntag Specialties Africa.

The focus on tapping into the South African market was recently reflected in specialty chemicals supplier Azelis’ inauguration of a personal care laboratory in Midrand, South Africa.

Recent acquisition activity
In other industry moves, L’Oréal announced that it completed the acquisition of Aesop in accordance with the terms disclosed in April 2023. Aesop has been part of Natura &Co since 2012, and its sales have grown nineteen-fold. Between 2012 and 2022, gross sales increased from US$28 million to US$537 million. Moreover, retail stores increased from 52 to 395 in this period as Aesop expanded globally from eight to 29 markets.

Last month, Japan-headquartered Mitsui & Co. acquired all the shares in cosmetics contract manufacturer Dermaceutical Laboratories. The US-based company is an original design manufacturer that develops and manufactures skin care and color cosmetics solutions and products for US companies and global brands.

Edited by Sabine Waldeck