Barentz funds growth, further acquisitions

https://www.dreamstime.com/stock-images-equity-image19759554Ingredients distributor Barentz has announced that it has found a strong equity partner with the assistance of Holland Corporate Finance/M&A International. Barentz said it will use the additional funds to accelerate growth in promising markets.

 

The ingredients distribution market has seen major consolidation activities in the past decade, the company notes.

 

“The consolidation trend in the distribution business is driven by, among others, the reduction of distributor relationships maintained by suppliers and a globalisation of the industry, which force ingredients distributors to increase their geographical reach and expand their product portfolio in order to achieve critical mass and realise economies of scale,” said Hidde van der Wal, CEO of Barentz International. “These drivers are expected to result in a further consolidation in the coming years.”

 

Barentz has had an active role in the market consolidation, which included the acquisitions of Vitablend (2008), Agri Nutrition (2008), Forum Products (2011) and Maustepalvelu (2014). The majority participations in RFI (2011), Prochifar (2012), NK Chemicals (2013) and Additive Solutions (2014) have enabled Barentz to strengthen its market position and expand its geographical reach even further, the company said.

 

“We are pleased that Barentz can kick off the year with a capital investment from a strong equity partner which perfectly fits with the Barentz culture,” said Marc van de Put, partner at Holland Corporate Finance. “Our next step together is to find suitable acquisition candidates in Barentz’ core distribution markets in the food & nutrition, pharmaceutical, personal care and animal nutrition industries in order to accelerate the growth strategy of Barentz.”