Azelis, a leading distributor of specialty chemicals and food ingredients has just acquired a majority shareholding of MKVN Chemicals Co Ltd (MKVN Chemicals) and Viet Chemicals Trading and Service Co Ltd (Viet Chemicals) through their parent company Bellekimia Singapore Pte. Ltd (Bellekimia).
Both companies are active in personal care, industrial chemicals, agro and food segments as well as supply chain solutions. Founded in 2000 and with offices in Hanoi and Ho Chi Minh, MKVN Chemicals and Viet Chemicals have a strong reputation in Vietnam, serving first-class international principals and 700 customers.
Why was the deal successful?
According to a research by Vietnam Insider, Azelis has acquired these businesses because of strong market presence and know-how of the local MKVN Chemicals and Viet Chemicals team will significantly increase Azelis’ presence in Vietnam allowing for significant portfolio expansion through lateral integration. Beside, Vietnam is the 15th most populated country in the world with a very young workforce, increasing purchasing power and growing access to premium products.
MKVN Chemicals’ and Viet Chemicals’ main business activity in personal care benefits directly from these favorable macroeconomic factors. This transaction is consistent with Azelis’ corporate strategy of complementing organic growth with strategic acquisitions.
“With an M&A, investors can enjoy preexisting access to consumers, locations, and distribution channels. This local knowledge can prove critical to successful operations within Vietnam’s vibrant but rapidly changing investment environment”, Sophie Dao, Partner of GBS, an investment consulting firm in told Vietnam Insider.
Kamal Hezry Kassim, Managing Director of MKVN Chemicals and Viet Chemicals, will continue to manage the business and will report to Azelis Asia Pacific CEO & President, Laurent Nataf.
Laurent Nataf, CEO & President of Azelis Asia Pacific told Vietnam Insider: “Growth in Asia Pacific has been one of the strategic priorities for Azelis. By strengthening our presence in Vietnam, we will gain better coverage in the entire region which is key for us to attract new mandates with our existing principals. Azelis and our new partners MKVN Chemicals and Viet Chemicals have highly complementary business models which will help us diversify our product portfolio significantly. MKVN Chemicals and Viet Chemicals currently operate best-in-class personal care laboratories in Vietnam. These laboratories will provide important added value to Azelis’ existing technical expertise and will bring benefits to the entire region. Last but certainly not least, the Kassim family have an excellent reputation on the market and the entire management team is well known and respected in the country.”
Kamal Hezry Kassim, Managing Director of MKVN Chemicals and Viet Chemicals, adds: “We are very excited about this partnership for several reasons. Firstly, becoming part of such a highly regarded, international player will not only provide continuity and security for our company but also additional expertise, infrastructure and growth opportunities. Secondly, we will benefit greatly from Azelis’ sustainability reputation and EcoVadis Gold rating, which are both important criteria for customers and corporate principals alike in South East Asia. Thirdly, there is an excellent fit between our strong technical focus on one side and Azelis’ ability to offer innovative solutions to the market on the other. In short, joining forces with Azelis will bring great synergies not only for both companies but also will be beneficial for our principals and customers alike.”
Also read: Merger and Acquisition in Vietnam
Azelis has been active in Vietnam since 2015 and it employs some of the best industry professionals in the country. Azelis runs application laboratories for Personal Care, Home Care, CASE and Textiles in Vietnam.
The acquisition of MKVN Chemicals and Viet Chemicals illustrates the support provided by EQT since the initial acquisition of Azelis. EQT is confident that the expanded range of services and global reach provided by this acquisition will continue to bring benefits to customers and principals of the combined group.