DKSH has signed an agreement to acquire a 70% stake in a joint-venture with Chinese specialty chemicals distributor Right Base Chemicals, enhancing its market presence in the Asia Pacific region.

Target Company Information

DKSH has entered into an agreement to acquire a majority stake in its joint-venture with Right Base Chemicals (RBC), a prominent specialty chemicals distributor based in Shanghai, China. Founded in 1992, RBC focuses primarily on the distribution of additives, resins, and colorants specifically tailored for coatings and ink applications. With a workforce of 60 employees, RBC operates across the Eastern, Central, and South-Western regions of the Chinese market, generating approximately CHF 25 million in net sales with robust profitability and capital returns.

This acquisition aligns with DKSH’s strategic goals to bolster its standing within the distribution sector of specialty chemicals and ingredients throughout the Asia Pacific region. The initial investment will see DKSH acquire a 70% stake in the joint venture, with plans to gain control of the remaining 30% in five years, marking a significant step toward market consolidation within the industry.

Industry Overview in China

The specialty chemicals market in China is the largest in the Asia-Pacific region, reflecting the country’s rapid industrialization and increasing demand for advanced ma