Brenntag announces strategic growth plan, including M&A budget

Brenntag, the global market leader in chemicals and ingredients distribution, announced its detailed strategic growth plan including new mid-term targets until 2026. The comprehensive “Strategy to Win” comprises dedicated growth strategies for both divisions, Brenntag Specialties and Brenntag Essentials, details and targets for the company’s digital, data, and excellence transformation as well as its sustainability and M&A strategy.

Brenntag sees strategic mergers and acquisitions as an enabler of future growth and thus will double the annual planned M&A spend to around EUR400 to 500 million (USD412 to 516 million). As a leading consolidator in the industry, Brenntag’s acquisition strategy will be focused on five key pillars, such as the accelerating growth in Life Sciences globally, enhancing strategic capabilities and market positions, expanding positions in emerging markets in both divisions, filling white spots to complement the existing portfolio, and improving tech capabilities that enable efficiency gains.

Long-term transformation of the company

“Strategy to Win” represents the second phase in Brenntag’s transformation journey. The first phase, “Project Brenntag”, started more than two years ago and focused on implementing the new operating model with two global business divisions and clear customer segmentation, optimizing the site network, and on structurally addressing productivity improvements by 2023. The ambitious Project Brenntag targets included an additional annualized operating EBITDA contribution of EUR220 million (USD227 million). As per the end of 2022, all Project Brenntag targets will be reached, one year ahead of plan. As intended, Project Brenntag has laid the foundation and enabled the company to achieve improved sustainable organic earnings growth.

“Brenntag is the undisputed and resilient leader in an attractively growing and highly fragmented, indispensable market. We have now defined how to strengthen and expand this position. We aim to foster growth in our global divisions with clear differentiated strategies. Moreover, we build a comprehensive digital and data framework and architecture to better serve our global customer base and achieve the next level of operational efficiency, growth, and excellence. With our comprehensive and ambitious ‘Strategy to Win’ we aim to outpace the underlying market growth. Brenntag will play a crucial role in the ecosystem of sustainable global chemicals and ingredients distribution,” said Christian Kohlpaintner, chief executive officer, Brenntag SE.