Buyout firm backs Azelis expansion

Azelis Group, the specialist chemicals distribution group, has announced an agreement to acquire Broste, a privately-owned Denmark-based chemicals distributor. The transaction is estimated to have a value in excess of €30m based on turnover multiples.

Azelis Group is backed by private equity firm Electra Partners Europe. The purchase of Broste is expected to be completed by September 2006.

Broste, which was sold by Peter Broste, is a distributor of additives, ingredients and raw materials in the Northern European market, and achieves turnover exceeding €120m. It employs 130 staff and has its headquarters in Denmark. The company will continue to trade as Broste under the current management team, led by chief executive officer Jens Schroder.

Broste is the sixth in a series of companies to have joined the Azelis Group since the management buyout backed by Electra Partners Europe in December 2003. The most recent acquisitions include Impex Quimica in Spain, Belgian companies Sepulchre and Sibeco, Pan Polymers in the UK and Brown & Gillmer in Ireland.

This latest acquisition takes expected Azelis Group sales for 2005 to €820m, a 74% increase from €470m since the buyout by Electra Partners.

Mark Elborn, a director in Electra’s Frankfurt team, said: “Broste is a key strategic addition to the Azelis Group, adding an important region to our pan-European offering, in line with our buy-and-build strategy for the group.”

Electra owns 70% of the equity in Azelis, with the remaining shares in the hands of the international management team.

Azelis was advised by Audon Partners, the Danish part of M&A International, the organisation of independent firms advising on international mergers and acquisitions. The vender was advised by Ernst & Young.