Azelis has signed an agreement to acquire Megafarma, a Mexican speciality distributor for the food, pharma and veterinary industries, in an effort to enter the Latin America market.
The deal includes 100% of the outstanding shares of Megafarma, will provide Azelis access to a ‘promising market’ and will create a strong platform for growth in the global specialty chemicals and food ingredients distribution business.
Dr Hans Joachim Müller, Azelis CEO and president, said: “Being the most populous country in the Americas after the United States and Brazil and with a large specialty chemicals market, Mexico is an excellent entry point into the Spanish speaking part of America, where Azelis was not yet present.
“Local presence in Mexico will allow us to add new mandates of food and pharma principals we already work within other geographies. The combined product and principal portfolio and geographic spread will allow us to accelerate our growth strategy and solidify our position as a preferred partner in the specialty chemicals business.”
Within its food division, Megafarma distributes products designed for the food, beverage and supplement industry, which are applicable in categories such as dairy, infant supplements and baking.
Azelis said the Mexico City-headquartered company represents some of the world’s most renowned raw material producers and serves a large number of customers in all Mexican regions.
According to Azelis, the acquisition will enable it to gain a strong position in the pharma and food sectors in Mexico, while expanding into other markets such as plastics, foam, and personal care.
Martin Hernandez, Megafarma’s general director, said: “Joining Azelis means becoming part of a growing international group, which is a milestone in our company’s development.
“We share similar strategies and culture and I am confident that Megafarma will continue to thrive under its new ownership. Our people look forward to joining forces with their Azelis colleagues and building a unique product and principal portfolio to benefit our customers and employees.”
Azelis’ recent purchase is part of its strategy for sustainable organic growth. The transaction is expected to close next month.