Chemical Distributors M&A

The Chemical Distributor market has been undergoing a period of consolidation for a number of years. Large players have emerged from what was initially a highly fragmented situation, by expanding their product offering and extending their geographical reach, in order to increase market share. Several key players in the market are backed by Private Equity; these have been looking to expand through acquisition, resulting in a very busy M&A market in recent years.

Chemical Distribution plays a crucial role in the Chemical industry, connecting producers (‘principals’) with a large number of smaller customers. This alleviates the principals of the logistical and administrative burden of servicing these smaller accounts, and allows them to focus on their core customers. The consumer also benefits from being offered a more tailored experience. Distributors provide customers with technical support and benefit from economies of scale, by supplying products from multiple suppliers to small customers. Specialty Chemical Distributors have also enhanced their service by extending ‘value-added’ services.