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Equity Story

  • Brenntag’s business model is characterized by a strong logistic efficiency while combining a global platform with local reach to ensure the distribution to the company’s diverse supplier and broad B2B-customer base in a market with high entry barriers. The company is able to sell in quantities that suffice for global players and niche companies.

  • Brenntag’s competitive landscape shows only a few large players that dominate the market. Here Brenntag is counting on their core competitive advantages that is their diverse portfolio and flexibility, their proven acquisition track record and ecological conscientiousness.

  • Near 80% of the company’s revenue is dependent on the comparatively stable US and EMEA markets. Brenntag reports a steady margin overall with approx. 10%, which can be further improved by portfolio optimization and value-added services.

SWOT Analysis

Strengths

  • Global market leader combinig a global platform with local reach

  • Diversified supplier and customer base

  • No material exposure to any single market

  • Proven acquisition track record

Weaknesses

  • Relatively small position in Asia Pacific

  • High exposure to oil & gas market in North America

Opportunities

  • Third-party chemicals distribution growing faster than chemical demand

  • Increase supplier orientation and capture cross-selling opportunities

  • Accelerate growth and ESP accretion through bolt-on acquisitions

  • Improve margin through portfolio optimization and value-added service

Threats

  • Economic slowdown and political instability in key regions

  • Acquisition may put pressure on returns, at least temporarily

  • Foreign exchange risks as Brenntag operates in over 70 countries

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