Petronas Chemicals Group Bhd of Malaysia agreed to acquire Netherlands-based lube oil additive manufacturer BRB International B.V.s holding company for 163 million (U.S. $182 million) in cash, according to a May 16 Petronas filing with the stock exchange of Malaysia.
Technically, Petronas acquired Da Vinci Group B.V., which is the holding company of BRB.
BRB CEO Ralph Pinckaers said in its May 16 news release that he sees this as an exciting opportunity in the further development of BRB to achieve its goals of becoming a global supplier in silicones and lube oil additives. The company stated in the release that after 38 years in business and very fast growth, to continue this growth the management team and shareholders have realized that a review of the capital structure was necessary. We wanted to ensure that our services and product solutions will remain available. Both Petronas and BRB share this vision, which enables the group to enhance its competitive position in attractive end-markets.
Upon the agreements completion, BRB will become a wholly-owned subsidiary of Petronas Chemical Group. BRB manufactures a full range of lubricant additives for automotive and industrial applications. According to its website, the products include viscosity modifiers, engine oil additives, driveline additives and hydraulic additives, along with products such as sulfonates, pour point depressants and friction modifiers.
Petronas Chemical Group entered into a sales and purchase agreement to acquire 100 percent of the company from its shareholders, including, among others, funds managed by Bencis Capital Partner. According to its website, Bencis is an independent investment company based in Amsterdam, the Netherlands; Brussels, Belgium; and D sseldorf, Germany. The company has invested in businesses in the Netherlands, Belgium and Germany since 1999.
Petronas Chemicals said in a news release on the acquisition that it recently announced its next chapter of growth, which will focus on future strategic positioning venturing into derivatives and specialty chemicals. The companys two major operating business segments are olefins and derivatives, and fertilizers and methanol.
The acquisition accelerates the realization of PCGs vision to create value by diversifying its product portfolio into differentiated and specialty chemicals, PCG Managing Director/CEO Datuk Sazali Hamzah said in the news release.
According to its web site, Petronas Chemicals Group markets a broad range of chemical products to customers in 30 countries across South East Asia and the Asia Pacific. Its major markets besides Malaysia include China, India, Thailand, Indonesia, Japan, South Korea, Taiwan, Philippines, Vietnam, Singapore, Australia, New Zealand. Chemicals the company manufactures include ethanolamines, ethoxylates and glycol ethers.