Brenntag Acquires Australian AdBlue Distributor

Brenntag announces it has signed an agreement to acquire the distribution business of Blue Sky Environment, an Australian distributor of diesel exhaust fluid.

Brenntag, the global market leader in chemical distribution, has signed a purchase agreement to acquire the distribution business of Blue Sky Environment Pty Ltd (Blue Sky) headquartered in Brisbane, Australia. Blue Sky is active as a distributor of AdBlue with a national storage and dispensing network across Australia.

“This acquisition offers us the possibility to benefit from the growth perspectives in the Australian AdBlue market. It enables us to expand our capabilities and to establish a major AdBlue position throughout Australia. We continue our successful growth path after the acquisition of ISM/Salkat Group in Australia and New Zealand in 2012,” says Henri Néjade, President and CEO Brenntag Asia Pacific.

The Australian AdBlue market is still at an early stage as the Euro 5 standard only became a requirement about two years ago and is expected to grow significantly in the next years. Furthermore the upgrade of truck fleets to AdBlue is expected to continue in the following years due to the implementation of the Euro 6 standard in Australia in 2014.

AdBlue is a non-toxic and environmentally friendly solution that transforms harmful NOx emissions from heavy-duty diesel-powered vehicles into harmless water vapor and nitrogen. The product is the operating fluid used with these vehicles equipped with Selective Catalytic Reduction technology to comply with the Euro 5 and 6 emissions standards.

For the financial year 2013, Blue Sky expects sales of AUD 5.6 million, gross profit of AUD 2.2 million and EBITDA of AUD 1.3 million. The investments amount will be AUD 2.7 million.