The deal
On 25th July 2017, Azelis announced its agreement to fully acquire Chemcolour. With a team of over 90 people, the deal sees Azelis extend its network capabilities and growth opportunities in both the Australian and New Zealand marketplaces.
Chemcolor has experienced local market success, growing steadily in the speciality chemicals arena.
As Azelis heads towards achieving further growth in the speciality chemicals and ingredients distribution industries, its main shareholders, Apax Partners — which have held the post since 2015 — will continue to work alongside the company to attain these objectives.
The full transaction relating to this acquisition deal will be finalised and closed in the next few months. Details and terms of this transaction were not disclosed.
Why Australia and New Zealand?
“Australia and New Zealand are wealthy countries with a growing population and rich in natural resources,” recalled Dr Hans Joachim Müller, Azelis CEO.
Emphasising the strong naturals and organic market in Oceanic region, Müller went on to say: “The fact that the fundamentals of the countries positively contribute to the strength of Chemcolor’s business model, makes this acquisition a great platform to extend mandates with our existing, global principles into Australia and New Zealand.”
“Chemcolour has a significant presence and a long-standing history in both New Zealand and Australia,” adds Laurent Nataf, Azelis CEO APAC.
Commenting on its local connections and comprehensive business model, Nataf reveals: “Their business model is fully tailored to local markets, not only in their superb product portfolio and service but also in the technical knowledge and commercial skills of their people.”
“Chemcolour has positioned itself well in the New Zealand and Australian markets and the time is right to continue this growth,” added Murray Nancekivell, Chemcolour CEO.
Natural stance
Australia and New Zealand are known for their strong position in the natural and organic markets. Mergers and acquisitions are common in the Australian beauty market as brands consolidate their propositions and extend into new product or geographic areas, Euromonitor International reveals.
Australia also displays the highest growth figures from natural and indie names as consumers search for active and innovative brands that offer unique product ranges.
Looking after the environment is also a significant driver in the New Zealand cosmetics space, as consumer decision-making purchases are demonstrating a preference for products that come with 100% natural, paraben-free, palm-free or similar claims.