DKSH has acquired specialty chemicals distributor Axieo to expand its market presence in Australia and New Zealand, enhancing its service offerings and innovation capabilities in the specialty chemicals sector.

Target Company Overview

DKSH has signed an agreement to acquire Axieo, a distributor of specialty chemicals based in Australia. Founded in 1950, Axieo serves a diverse customer base of over 2,600 clients across various sectors, including industrial applications, cosmetics, pharmaceuticals, and food and beverage industries. With two dedicated innovation centers in partnership with Monash University in Melbourne, Axieo is at the forefront of developing advanced formulation solutions, thereby enhancing DKSH's existing capabilities in innovation and product delivery.

Employing a team of 120 specialists, Axieo generates approximately CHF 130 million in net sales, showcasing robust profitability and return on capital. The acquisition is positioned to be immediately accretive to DKSH's earnings, with the transaction anticipated to close in the first quarter of 2020, pending certain conditions.

Industry Overview

The specialty chemicals sector in Australia and New Zealand is marked by a strong demand in various industries, notably in agriculture, healthcare, and consumer goods. This sector has been evolving rapidly, dictated by innovations