Azelis Completes Major Acquisition in Vietnam

Azelis announced that through its parent company Bellekimia Singapore Pte. Ltd (Bellekimia), it has acquired a majority stake in MKVN Chemicals Co Ltd (MKVN Chemicals) and Viet Chemicals Trading and Service Co Ltd (Viet Chemicals). Both companies are active in personal care, industrial chemicals, agriculture and food segments as well as supply chain solutions. Founded in 2000 with offices in Hanoi and Ho Chi Minh City, MKVN Chemicals and Viet Chemicals hold strong recognition serving leading international managers and 700 customers in Vietnam.

Key Points and Rationale

• The strong market presence and know-how of the local MKVN Chemicals and Viet Chemicals team will significantly increase Azelis' presence in Vietnam and provide substantial portfolio expansion through lateral integration.
• Vietnam is the world's 15th most populous country with a very young workforce, rising purchasing power and increasing access to premium products.
• The primary business activities of MKVN Chemicals and Viet Chemicals in personal care directly benefit from these positive macroeconomic factors.
• This transaction is consistent with Azelis' corporate strategy of complementing organic growth with strategic acquisitions.

 

Kamal Hezry Kassim, General Manager of MKVN Chemicals and Viet Chemicals, will continue to manage the business and report to Laurent Nataf, CEO and President of Azelis Asia Pacific.

Laurent Nataf, CEO and President of Azelis Asia Pacific, explains: "Growth in Asia Pacific has become one of the strategic priorities for Azelis. By strengthening our presence in Vietnam, we will gain improved coverage across the entire region, which is key to attracting new assignments with our existing managers. Azelis and our new partners MKVN Chemicals and Viet Chemicals have highly complementary business models that will help us significantly diversify our product portfolio. MKVN Chemicals and Viet Chemicals currently operate best-in-class personal care laboratories in Vietnam. These laboratories will provide significant added value to Azelis' existing technical expertise and will benefit the entire region. Last, but certainly not least, the Kassim family enjoys excellent standing in the market, and the entire management team is well-known and respected in the country."

Kamal Hezry Kassim, General Manager of MKVN Chemicals and Viet Chemicals, adds:

"We are very excited about this partnership for several reasons. First, being part of such a reputable, international player will not only provide continuity and security for our company, but also provide additional expertise, infrastructure and growth opportunities. Second, we will greatly benefit from Azelis' sustainability reputation and EcoVadis Gold rating, which are important criteria for both customers in Southeast Asia and corporate managers. Third, there is a perfect fit between our strong technical focus on one side and Azelis' ability to deliver innovative solutions to the market on the other. In short, combining our strengths with Azelis will be beneficial not only for the two companies, but also for our managers and customers." Azelis has been operating in Vietnam since 2015 and employs some of the best industry professionals in the country. Azelis operates application laboratories for Personal Care, Home Care, CASE and Textiles in Vietnam. The acquisition of MKVN Chemicals and Viet Chemicals demonstrates the support provided by EQT since its acquisition of Azelis. EQT is confident that the expanded service range and global reach provided by this acquisition will continue to benefit customers and managers of the combined group.