DKSH Acquires Right Base Chemicals in China, Further Expanding its Performance Materials Business
Zurich, Switzerland, November 1, 2021 – DKSH today announced that it has signed an agreement for the acquisition of a majority stake in a joint-venture with Chinese specialty chemicals distributor Right Base Chemicals (RBC). The joint-venture is in line with DKSH's strategy to solidify its leading position in the distribution of specialty chemicals and ingredients in Asia Pacific.
RBC primarily distributes additives, resins, and colorants for coating and ink applications. Founded in 1992 and based in Shanghai, RBC and its 60 employees cover the Eastern, Central, and South-Western regions of the Chinese market.
Thomas Sul and Natale Capri, Co-Heads Business Unit Performance Materials at DKSH, jointly commented: “China is by far the largest market for chemical distribution in APAC. By acquiring RBC, we are actively driving forward the market consolidation of the specialty chemicals industry. This joint-venture will further strengthen our market coverage of the coatings industry and will provide an extended platform for leveraging our key suppliers portfolio for further industries in China. We are glad to welcome all of RBC's employees and look forward to growing with them together.”
RBC generates net sales of around CHF 25 million¹ at sound profitability and return on capital. Initially, DKSH will acquire a 70% stake in the joint-venture with RBC and the remaining 30% in five years. The joint-venture is expected to be immediately earnings-accretive. Closing of the transaction is expected for the fourth quarter of 2021 and is subject to certain conditions.
Windy Wang, General Manager and majority owner of RBS, added: "For close to 30 years, we have successfully served our customers in the Chinese markets. We look forward to continuing our successful journey with DKSH, by combining their international expertise and our local experience and to generate more value for our business partners."
¹ Based on a CNY / CHF exchange rate of 7.00