BRENNTAG ACQUIRES DIPOL CHEMICAL INTERNATIONAL, INC (USA)
Expansion of chemical distribution network in Ukraine, Russia and the Baltic States

Dipol Chemical International, Kyiv, Ukraine, Wednesday, 19 November 2008

KYIV - Brenntag, the global leader in chemical distribution, announces the acquisition of Dipol Chemical International, Inc. The US company is focused on the distribution of chemicals in Ukraine, Russia and the Baltic States and also provides its services in Belorussia and Moldova.

Founded in 1994, Dipol is now a leading company in the distribution of polymers and specialty chemicals in Ukraine, Russia and the Baltic States. With sales in 2007 amounting to US$ 100 million, Dipol operates a well-established distribution network via offices and warehouses in Kiev, St. Petersburg, Moscow and Riga. The company serves a variety of industries and acts as distributor for companies such as DOW, Ineos, Ineos Nova, DuPont, Constab, Cytec, etc.

“We see huge potential in this area and want to participate in the growth of this East region. The acquisition enables Brenntag to enter the market in the Ukraine and substantially increases our presence in Russia. Furthermore this cooperation is an ideal foothold to enhance Brenntag’s attractiveness for suppliers and customers in fields such as food, cosmetics, construction, paint & varnish and oil & gas. We are very excited about this acquisition and we are looking forward to future development”, says Helmut Struger, Managing Director Brenntag Central and Eastern Europe.

“This is the first attempt by a major worldwide distributor to gain a foothold in Russia and Ukraine, and gives excellent opportunities for both parties to extend existing product portfolios and to enlarge business to additional market segments like Food, Feed, Construction, Cosmetics & Household, and others,” said Dipol CEO Alfred Roth.

Steve Holland, Chief Executive Brenntag Europe adds: “With Dipol Chemical International as our partner, Brenntag takes a further important step in strengthening the distribution network in Central and Eastern Europe. We would like to extend a warm welcome to both employees and management of Dipol”.

With external sales of Euro 680 million in 2007 Brenntag is the leading chemical distributor in Central and Eastern Europe. Brenntag CEE is established in 14 countries with 1,400 people. 32,000 customers are regularly served through Brenntag CEE’s network of 50 locations.

Brenntag recorded globally in 2007 external sales of EUR 6.7 billion (US$ 9.1 billion). The company operates in excess of 300 locations with more than 11,000 people in 55 countries. In keeping with the company’s strong position in world markets, Brenntag is committed to providing value to its customers and suppliers through superior supply chain logistics, single sourcing and value added services. Brenntag offers an unrivalled, extensive and state-of-the-art distribution network for industrial and specialty chemicals to its suppliers and customers alike, throughout the world.

LINK: http://www.dipol.net/news.asp?lang=en

NOTE:  Dipol Chemical International is a member of the U.S.-Ukraine Business Council (USUBC).