SHANGHAI—Azelis, a leading service provider in the specialty chemicals and food ingredients industry, said it is reinforcing its presence in the Chinese market with the acquisition of a 100-percent stake in WWRC (China) Holdings Ltd. and Friendship Chemical Co. Ltd. According to a Sept. 27 press release, Azelis said these acquisitions will provide a strong foothold in the coatings, adhesives, sealants and elastomers (CASE) and rubber and plastic additives (R&PA) industrial chemicals segments, further strengthening the group's lateral value chain.
Azelis said the acquisitions broaden its offering and geographic reach in the Chinese market, and both acquisitions provide a base for expansion into the industrial chemicals sector in the wider Asia-Pacific region. In addition, Azelis said these transactions align with its strategy to support global coverage with local teams and complement organic growth with strategic value enhancing acquisitions, according to the press release.
Founded in 1990, WWRC China is a leading Chinese distributor in the CASE and R&PA market segments and, like Azelis, strives for an innovative and enhanced offering through using laboratories. From its five offices in Hong Kong, Guangzhou, Tianjin, Shanghai and Chengdu, WWRC China serves about 3,000 customers with a portfolio of principals. WWRC China's 91 employees all will join Azelis. Headquartered in Hong Kong, Friendship Chemical is a prominent player in the distribution of herbal oil ingredients.
This transaction was signed this summer and is expected to close in October.
"Over the past 30 years, we have built a strong market presence in China, one of the world's leading economies," said Ching Kiu Wong, majority shareholder of WWRC China and sole owner of Friendship Chemical. "We pride ourselves on the long-term relationships with our principals and customers who are used to receiving the highest quality service from us.
"Combining our strengths with Azelis' will allow us to further improve our services and product offerings to our partners," he added. "Joining forces will also allow us to further strengthen our technical expertise and formulation development."
Laurent Nataf, CEO and president of Azelis Asia Pacific, said the company is "excited" about the acquisition and how it will grow the business in the industrial chemicals sector.
"WWRC China's segments are highly complementary to Azelis China's," Nataf explained. "WWRC China has excellent relationships with large Chinese suppliers, creating opportunities to expand with these principals worldwide. We also share the same vision and focus on sustainability and commitment to our partners. The addition of WWRC China's offices increases our geographical coverage in China, allowing us to better serve our customers."