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Brenntag

From Alfawiki
Reviewed by Alfawiki editorsUpdated 30 May 202532 sources
Brenntag SE
Company typeSocietas Europaea
IndustryChemicals
Founded1874
Key people
  • Christian Kohlpaintner, (Chairman)
    Kristin Neumann
    Ewout van Jarwaarde
    Michael Friede
    Richard Ridinger, (Supervisory Board Chair)
Revenue€16.2 billion[1] (2024-12-31)
Number of employees
18,122[1]
Websitebrenntag.com

The Brenntag SE is the parent company of the Brenntag Group, headquartered in Essen.

According to ICIS, the company is the world market leader in chemical and ingredient distribution.[2] The group operates approximately 600 sites in 72 countries.

History

Founding

Logo until November 2022 Brenntag was founded on 9 October 1874 by Jewish merchant Philipp Mühsam (14 November 1848 – 17 May 1914) under his own name in Berlin.[3] Initially, Philipp Mühsam traded in agricultural goods, with eggs as the most successful product.[3] By 1879, the company entered the trade in pharmaceutical raw materials, known as “Droguen”. In 1881, it distributed chemicals, dyes, pharmaceutical ingredients, and reduced agricultural goods.[3] In November 1923, the founder’s son, Dr. Kurt Mühsam (31 December 1887 – 20 March 1928), and his partner Julius Herz converted the company into a joint-stock company.[4]

National Socialist era and post-war period

Julius Herz, who after Kurt Mühsam’s death held 91 % of the share capital, offered the company for sale on Christmas Eve 1936 to entrepreneurs Hugo Hermann Stinnes and Otto Stinnes.[5] On 20 February 1937, the sale was contractually concluded. Herz, also Jewish, emigrated to the USA on 22 September 1937.[5] In 1937, under Stinnes ownership, the company was renamed “Fuel, Chemicals and Transport AG”, and in 1938 to “Brenntag”.[5] The headquarters moved in 1943 from Berlin to Mülheim an der Ruhr, where the Stinnes family was based.[6]

On 17 September 1949, Julius Herz (by then Julius Hart) filed a restitution claim in the British Zone for the undervalued sale price. On 1 September 1950, Hart and the Stinnes brothers settled, and Hart received DM 720,000.[5]

In 1950, Brenntag expanded its warehousing capacity and product line to include inorganic and organic chemicals, solvents, plastics, resins, and specialty chemicals.[7] Subsequently, Brenntag also distributed fuels (gasoline, diesel oil, heating oil) from Ruhrbau GmbH, another Stinnes company.[8]

International expansion and acquisitions

The first international acquisition came in 1966 with Belgian firm Balder.[9] From 1969, Brenntag expanded into the USA through successive acquisitions. In the 1980s, Brenntag acquired Western Chemical (1980), Textile Chemical (1981), Delta (1986), and in 1989 Crown and PB&S Chemicals.[10][7] European acquisitions included Holland Chemical International N.V. in 2000—the company’s largest deal to that date.[11]

In 2003, Deutsche Bahn acquired Stinnes AG including Brenntag. In 2004, US private equity firm Bain Capital took ownership, restructuring Brenntag to a GmbH. In 2006, Bain sold Brenntag to BC Partners.[9][12]

Between 2007 and 2010, Brenntag completed 24 acquisitions, totaling 99 since 2007.[13][7] In 2008, Brenntag entered Asia by acquiring Rhodia’s Mumbai business.[14] In 2010, it acquired EAC Industrial Ingredients in Bangkok.[7][15] In 2001, Brenntag formed a joint venture with Zhong Yung International Chemical Ltd. in China,[16] and in 2016 acquired EPChem Group in Singapore.[17] In 2021, it acquired JM Swank and Matrix Chemical in the USA, expanding its food ingredient portfolio.[7][18]

Due to space limits at its Mülheim headquarters, Brenntag moved in 2017 to the “House of Elements” in Essen-Rüttenscheid.[19] In 2018, it launched the “Brenntag Food & Nutrition” brand for food-industry ingredients.[20]

IPO and public listing

On 29 March 2010, Brenntag debuted on the Frankfurt Stock Exchange and was included in the MDAX on 21 June 2010.[21]

In 2021, Brenntag converted from a German stock corporation to a Societas Europaea. On 20 September 2021, it joined the DAX as part of the index expansion to 40 companies.[22][23]

Corporate structure

Shareholder structure

(As of February 2025)[1]

  • Kühne Holding AG (> 15 %)
  • Artisan Partners Limited Partnership (> 10 %)
  • Flossbach von Storch AG (> 5 %)
  • BlackRock Inc (> 5 %)
  • Wellington Management Group LLC (> 3 %)
  • Harris Associates L.P. (> 3 %)
  • Free float

Business model

Brenntag purchases industrial and specialty chemicals in bulk, repackages them into customer-specific quantities, and distributes them to its clients. It serves as an intermediary between chemical producers and processing industries.[24]

The company also manages procurement, storage, and delivery of raw materials, as well as services such as blending, packaging, and repackaging.[25]

Business segments

Since 2021, Brenntag has operated two global segments: Brenntag Essentials for broad-use process chemicals, and Brenntag Specialties focusing on ingredients and services for targeted industries such as pharmaceuticals and nutrition.[26]

Key end markets include food, pharmaceuticals, cosmetics, oil & gas, and water treatment.[27]

The product catalog exceeds 10,000 items, from acids, alkalis, and solvents to substances for food, cosmetics, feed, and pharmaceuticals. Brenntag also supplies flavorings for vegan foods and spirits.[28]

Financial highlights

Key figures over recent years:[29]

Year 2017 2018 2019 2020 2021 2022 2023 2024
Revenue (€ million) 11,743 12,550 12,822 11,776 14,383 19,429 16,815 16,237
Profit before tax (€ million) 524 624 633 633 649 1,233 1,002 743
Total assets (€ million) 7,376 7,791 8,709 8,302 10,359 11,530 10,501 11,922
Equity (€ million) 2,999 3,301 3,579 3,612 3,995 4,803 4,357 4,762
Dividend per share (€) 1.10 1.20 1.25 1.35 1.45 2.00 2.10 2.10
Employees 15,416 16,616 17,492 17,237 17,236 17,540 17,709 18,122

Controversies

During the PIP breast implant scandal, it emerged that Brenntag supplied industrial silicone oil “Baysilone” from Momentive Performance Materials to Poly Implant Prothèse. This standard silicone oil is used in various industrial applications, personal care products, and construction sealants.[30] Brenntag states it warned customers that these products were intended for industrial and personal care use only.[31]

In 2017 and 2021, Brenntag faced criticism for supplying precursor chemicals for painkillers to a Syrian company via its Swiss subsidiary, amid speculation they could be used to produce chemical weapons such as sarin. Brenntag denied any breach of EU export controls. Duisburg prosecutors dropped investigations in August 2019.[32]

Literature

  • Christopher Kopper, Stephanie Tilly: 150 Jahre Brenntag. Von Berlin in die Welt. Siedler, Munich 2024, ISBN 978-3-8275-0194-3.

External links

References

  1. ↑ 1.0 1.1 1.2 Internet source: https://annualreport.brenntag.com/de/an-unsere-aktionaere/ “2024 Annual Report” Brenntag Website. Retrieved 2025-03-25.
  2. ↑ Internet source: https://www.icis.com/explore/press-releases/2024-top-100-distributors/ “2024 ICIS Top 100 Chemical Distributors ranking revealed” ICIS.com, 2024-05-28. Retrieved 2025-02-03.
  3. ↑ 3.0 3.1 3.2 Christopher Kopper, Stephanie Tilly: 150 Jahre Brenntag. Von Berlin in die Welt. Siedler, Munich 2024, ISBN 978-3-8275-0194-3, pp. 11–20.
  4. ↑ Christopher Kopper, Stephanie Tilly: pp. 37.
  5. ↑ 5.0 5.1 5.2 5.3 Christopher Kopper, Stephanie Tilly: pp. 53–57.
  6. ↑ Frank Meßing: “From Stinnes Offshoot to the DAX.” Westfälische Rundschau – Ennepetal, 7 September 2021, p. 8.
  7. ↑ 7.0 7.1 7.2 7.3 7.4 Internet source: https://corporate.brenntag.com/de/ueber-uns/geschichte/ “History of Brenntag” Brenntag. Retrieved 2022-08-15.
  8. ↑ W.O. Reichelt: “From Tavern Operations to Wholesale Service Station.” Die Zeit, No. 15, 10 April 1952, p. 8.
  9. ↑ 9.0 9.1 Christopher Kopper, Stephanie Tilly: p. 134.
  10. ↑ Chuck Stinnett: “Brenntag avoids cyclical swings.” Archive Courier & Press, 31 October 2009.
  11. ↑ PCI Magazine, 20 October 2000; Manager Magazin, 4 September 2000.
  12. ↑ “Thirty Years On Board.” Börsen-Zeitung, No. 50, 13 March 2010, p. 9.
  13. ↑ Anna Lena Lipka: “The Chemistry Is Right.” Focus Money, No. 202155, 5 January 2021, p. 10.
  14. ↑ domain-b.com, 1 October 2008.
  15. ↑ Food Ingredients First, 5 July 2010.
  16. ↑ ChemEurope, 22 August 2011.
  17. ↑ “Brenntag acquires Asian distributor.” Börsen-Zeitung, No. 208, 28 October 2016, p. 13.
  18. ↑ Food Business News, 24 June 2021.
  19. ↑ Rolf Schraa: “E.on Moves to Essen.” Die Welt, 22 December 2015.
  20. ↑ CHEManager Online, Retrieved 2022-08-16.
  21. ↑ WirtschaftsWoche, 21 June 2010; Christopher Kopper & Stephanie Tilly: p. 208.
  22. ↑ Börsen-Zeitung, No. 110, 12 June 2020; tagesschau.de; Deutsche Börse press release. Retrieved 2021-09-06.
  23. ↑ Hedi Schneid: “Brenntag Supplies the World with Chemicals.” Die Presse, 4 October 2021, p. 13.
  24. ↑ Anna Lena Lipka; Brigitte Koch: Frankfurter Allgemeine Zeitung, 19 February 2011, p. 20.
  25. ↑ FOCUS MONEY, 6 April 2016, p. 23.
  26. ↑ Anna Lena Lipka; FOCUS MONEY, 19 November 2013.
  27. ↑ Hedi Schneid, Die Presse.
  28. ↑ Frank Meßing; FOCUS.
  29. ↑ Internet source: https://www.finanzen.net/bilanz_guv/brenntag “Company revenue and key figures,” Retrieved 2025-04-12.
  30. ↑ FAZ Online, 4 January 2012; Spiegel Online, 3 January 2012; Handelsblatt Online, 3 January 2012.
  31. ↑ n-tv NACHRICHTEN, 12 January 2012.
  32. ↑ Duisburg prosecutors drop probe – Reuters, 13 August 2019.

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