Dutch giant IMCD to acquire Kenyan chemical distributor in expansion plan

What you need to know:

The transaction for the planned acquisition is expected to be completed by end of 2016.
C&S, founded by Abdul Farrah in 1989, is a Kenyan distributor of ingredients to the food, cosmetics, detergents and pharmaceutical industries.

Netherlands-based chemicals and food ingredients distributor IMCD N.V. has announced plans to acquire Nairobi-based Chemicals and Solvents (EA) Ltd (C&S) for an undisclosed price in a bid to expand the firm's existing operations in Africa.

C&S, founded by Abdul Farrah in 1989, is a distributor of ingredients to the food, cosmetics, detergents and pharmaceutical industries.

IMCD is engaged in sales, marketing and distribution of specialty chemicals and food ingredients.

The company offers distribution management in Europe, Brazil, Asia Pacific and Africa and is active in over 30 countries.

Its product portfolio is divided into several lines including detergents, pharma, personal care, coatings, food and nutrition, lubricants, synthesis, plastics and others.

The transaction for the planned acquisition is expected to be completed by end of 2016.

“After completion of the transaction, expected in Q3 2016, the business will continue with its present management and staff,” said IMCD in a statement.

C&S, which has 26 staff, serves Kenya and regional markets including Uganda and Tanzania. In 2015 C&S it generated revenue of Sh560 million.

C&S founder Abdul Farrah said the acquisition would open up new opportunities for the Nairobi-based firm.

“IMCD’s culture and strategy is an excellent fit with C&S and we are in no doubt that this agreement will create new opportunities for future development and will enhance our service and technical support to our partners,” said Mr Farrah.

IMCD South Africa Managing Director Otto Brinkmann said the acquisition would allow IMCD to expand its operations within the African region.

“We are very pleased to complete this acquisition. A local position in Kenya will offer us the opportunity to further grow in the African market and expand our partnerships and services beyond Southern Africa,” said Mr Brinkman.

IMCD’s products include additives, antioxidants, extracts, preservatives, acids, lubricants, oils, softeners, wax, components for oral, topical and vaccine drug formulations, fragrances, pigments, solvents, resins, flavours, herbs and spices, surface active agents, and fillers, among others.