Brenntag, a German chemical distribution company, has agreed to acquire the chemical distribution division of Zytex, an Indian-based biotechnology food formulation and manufacturer, for €10.2m.
Zytex's food ingredients distribution business focuses on enzymes and yeast for a wide range of applications in the food and beverage industries in India.
The acquisition is expected to be completed by the end of this month.
Following the completion of the deal, the acquired business will be merged into Mumbai-headquartered Brenntag India.
Brenntag Asia-Pacific president and CEO Henri Néjade said that this acquisition further underlines the company's commitment to India and its partners.
"Our Indian business has rapidly grown over the past few years partly through organic growth as well as strategic acquisitions."
"This new business will improve our economies of scale, broaden our product offerings to our Indian customers, strengthen our Pan-Indian sales and distribution organization and will help us to accelerate the growth of Brenntag India in the coming years."
Brenntag expects the acquired business to generate annual sales of €7m, gross profit of €1.8m and EBITDA of €1.4m for the full year 2013.
