Biesterfeld expands Asian presence by taking majority stake in GME Chemicals

HAMBURG, Germany—The Biesterfeld Group has founded a joint venture as it has taken over the majority stake in Singapore-based polymer distributor GME Chemicals.

The joint venture is part of a long-term move by the German chemical and polymer distributor to fully acquire GME's remaining shares over the next five years, Biesterfeld said in an Oct. 20 statement.

According to the group, GME Chemicals is one of the leading distributors for specialty chemicals and polymers in Southeast Asia.

The acquisition aligns with the German group's strategy for long-term growth in "one of the world's fastest growing regions to expand in their core business."

GME Chemicals is active in the markets for performance and industrial chemicals, food, pharmaceuticals, elastomers and specialty polymers.

Among other products, the company supplies a portfolio of elastomers, including TPV, TPU, TPE, POE, PBE, EDPM, NBR and fluoroelastomers, to a wide range of industries, including automotive, health care, and oil and gas.

Founded in 1999, the company has subsidiaries in Malaysia, Indonesia, Vietnam, Thailand and China, and has 60 employees.

"Asia is an important growth market and of strategic importance for us," said Dirk Biesterfeld, chairman of the supervisory board of Biesterfeld A.G.

The group, he said, intends to "significantly increase" its market presence in the region with the "excellent addition" of GME Chemicals.

"The core business of Biesterfeld is technically demanding and advice-intensive products and services," said Biesterfeld CEO Thomas Arnold.

By acquiring GME Chemicals, he noted the company is strengthening and expanding its competencies in Asia.

"In Biesterfeld, we have not only found a majority shareholder and, in the future, a new owner, but a true partner," GME Chemicals said in a statement.

The parties have agreed not to disclose details of the transaction.