 | |
| Company type | Public (Societas Europaea) |
|---|---|
| ISIN | DE000A1DAHH0 US1071801013 |
| Industry | Distribution |
| Founded | 1874; 152 years ago (1874) |
| Founder | Philipp Mühsam |
| Headquarters | , |
Number of locations | 600 |
Key people | Jens Birgersson (CEO) Richard Ridinger (Chairman of theSupervisory board) |
| Services | Chemical and ingredients distribution |
| Revenue |  €16.8 billion (2023)[1] |
Number of employees | 17,709 (2023)[1] |
| Website | brenntag |
Brenntag SE is the holding company of Brenntag Group. The company was founded in 1874 in Berlin and specializes in the distribution of chemicals and ingredients. The company is headquartered inEssen,Germany and has operations in more than 600 locations in 72 countries.[2]
Brenntag was founded on October 9, 1874, in Berlin by the Jewish merchant Philipp Mühsam (November 14, 1848 – May 17, 1914) under his own name.[3] At first, the company Philipp Mühsam was an agricultural wholesale business, whose most successful product was eggs.[3] In 1879, Philipp Mühsam entered the trade of pharmaceutical raw materials, the so-called ‘drugs.’ By 1881, according to the sources, the company was distributing chemicals, dyes, drugs and also agricultural products, though the latter only in small quantities.[3] In November 1923, the founder’s son, Dr. Kurt Mühsam (December 31, 1887 – March 20, 1928), together with his business partner Julius Herz, converted the company into a joint stock corporation.[4]
Julius Herz, who after Kurt Mühsam’s death owned 91% of the share capital of Philipp Mühsam AG, presented a sales offer for the company to the entrepreneurs Hugo Hermann Stinnes and Otto Stinnes on Christmas Eve 1936. On February 20, 1937, the sale of all shares in Philipp Mühsam AG was contractually finalized. Julius Herz, also Jewish, was able to emigrate to the USA on September 22, 1937, after completing all contractual formalities. In 1937, the company, now part of the Stinnes corporate group, was renamed ‘Brennstoff-, Chemikalien- und Transport-Aktiengesellschaft,’ and a year later, it was renamed ‘Brenntag.[5]
On September 17, 1949, Julius Herz, who had in the meantime changed his name to Julius Hart, filed a restitution claim with the Central Office of the British Zone for Compensation. He sought compensation for the too-low sale price of Philipp Mühsam AG. On September 1, 1950, the lawyers of Hugo Hermann Stinnes, his brother Otto, and Julius Hart signed a settlement agreement. Julius Hart then received a payment of 720,000 DM to settle his restitution claim.[6]
In 1950, Brenntag expanded operations by addinginorganic andorganicchemicals,solvents,plastics,resins and specialty chemicals to its product line. In the following years, Brenntag also distributedfuels (carburettor fuels,diesel fuel andheating oil) fromRuhrbau GmbH, which was also a Stinnes company.[7]
In 1966, Brenntag acquired its first companyBalder fromBelgium. The company expanded into the USA in 1969. It then continued to grow its business there through acquisitions.
In the 1980s, the company continued to expand in the USA through acquisitions of several distribution companies, among others, the American distribution companiesWestern Chemical (1980),Textile Chemical (1981) andDelta (1986).[8] In 1989, Brenntag acquiredCrown andPB&S Chemicals.[9]
In the 1990s, Brenntag expanded within Europe through acquisitions and joint ventures.[10] This included, among others, theDutch companyHolland Chemical International N.V. By acquiring Holland Chemical International – the fifth-largest chemicals distributor worldwide at the time – in 2000 Brenntag gained market shares inScandinavia,Eastern Europe, and the USA, and became a market leader inLatin America.[11]
In 2003,Deutsche Bahn took over Stinnes AG, including Brenntag. Just one year later, US private equity firmBain Capital acquired Stinnes. Until the end of 2003, Brenntag had been a stock corporation, before Bain Capital converted it into alimited liability company.[12] In 2006, Brenntag was acquired byBC Partners.[13]
After the takeover by BC Partners, Brenntag continued to acquire companies worldwide, expanding its network and market shares. From 2007 until 2021 the group acquired up to 99 companies,[14] between 2007 and 2010 alone more than 24 companies. In most cases, these were small supplements to the existing business in markets in which Brenntag had been less present until then.[14][15]
Since 29 March 2010, Brenntag AG (WKN A1DAHH) is listed at theGerman Stock Exchange in the Prime Standard Segment, from 21 June 2010 until September 2021 as a member of theMDAX index.[16] As of 20 September 2021, the company is included in theDAX as part of an index reform and expansion from 30 to 40 companies.[13] In the meantime, Brenntag has returned to 100%free float ownership.[17]
Major acquisitions expanded operations in theAsia/Pacific region. In 2008, Brenntag took over theIndian companyRhodia inMumbai, giving Brenntag the first distribution presence in the region.[18] In 2010, Brenntag further expanded its market presence in the region significantly by acquiringEAC Industrial Ingredients Ltd. inBangkok.[10] In 2011, Brenntag established a joint venture withZhong Yung International Chemical Ltd. inChina and in 2016 the company acquired the distributorEPChem Group inSingapore.[19][20]
Due to capacity problems, in 2017, Brenntag moved its headquarters from Mülheim an der Ruhr, to theHouse of Elements inEssen-Rüttenscheid.[21] Further, in 2021, Brenntag was converted from astock corporation (AG) into aSocietas Europaea (SE).[22]
In 2021, further acquisitions took place, primarily of suppliers for food manufacturers.[15] A major acquisition in this regard was the takeover ofJM Swank in the USA. With the purchase, Brenntag acquired a major food distributor in North America, extensively expanding its range of food ingredients.[23]
In 2022, the Group generated revenues of 19.4 billion euros and employed more than 17,500 people. Brenntag has around 600 sites in 72 countries.[2]
Management Board[24]
Supervisory Board[25]
According to the definition ofDeutsche Börse, 100% of Brenntag shares are infree float. The shareholders subject to voting right notification are Kühne Holding AG (>15%), Artisan Partners Limited Partnership (>10%),BlackRock (>5%),Flossbach von Storch AG (>5%), Harris Associates L.P. (>5%),Wellington Management Group (>3%).[26]
Brenntag buys large quantities of industrial and specialtychemicals from manufacturers, commissions them into required quantities to meet specific demand and sells them on to its customers. The company linkschemical producers and theprocessing industry. Brenntag also handles the procurement, storage, and delivery of required basic materials for its customers as well as various processes such as mixing raw materials, packaging, or repackaging.[27][28] Part of Brenntag's business strategy is the acquisition, i.e., buying companies to strengthen its own market position and expand its portfolio.[29]
Brenntag's main operations include food, pharmaceuticals, cosmetics, oil and gas, andwater purification.[13] Brenntag's product catalog includes more than 10,000 items ranging from acids, bases, and solvents to substances for the food, cosmetics, feed and pharmaceutical industries. The company also develops and supplies flavorings for spirits and food products.[27][30] In addition, Brenntag operates around 80 application laboratories, where customer-specific services and products are developed.[28]
Brenntag has been organized into two global businesses since 2021.Brenntag Essentials supplies process chemicals for broad application areas on a local level, whileBrenntag Specialties concentrates on ingredients and services for selected focus industries such as pharmaceuticals and nutrition.[14]
Criticism of Brenntag arose in 2017 and again in 2021 because it supplied chemicals to Syria. At issue is the supply of raw materials for painkillers by Brenntag's Swiss-based subsidiary to the Syrian company MPI. Suspicions persist that the substances are used to manufacture chemical weapons such as sarin forSyria's usage of chemical weapons. Brenntag repeatedly denied violating EU export restrictions.[13]Duisburg public prosecutor's office closed proceedings against Brenntag in August 2019.[31]
Kopper, Christopher; Tilly, Stephanie (2024).150 Jahre Brenntag: von Berlin in die Welt. München: Siedler.ISBN 978-3-8275-0194-3.
{{cite book}}: CS1 maint: multiple names: authors list (link) CS1 maint: numeric names: authors list (link)
