IMCD Expands in China with Daoqin Acquisition
Deal News | Dec 13, 2024 | Globenewswire
IMCD N.V., a global distributor of speciality chemicals and ingredients, has announced an agreement to acquire Daoqin Biological Technology along with its associated companies in China. Daoqin, founded in 2011, specializes in distributing functional nutrition, nutraceutical, and food ingredients with a revenue of CNY 122 million in 2023. The acquisition will enhance IMCD's presence in China's food and nutrition markets, offering expanded capabilities and a stronger portfolio in the life science sector. The deal, which is subject to customary closing conditions, is expected to conclude in the second quarter of 2025.
Sectors
- Chemicals and Ingredients Distribution
- Life Sciences
- Food and Nutraceutical Ingredients
Geography
- China – The acquisition takes place in China, where Daoqin is based and operates its business.
- Europe – IMCD N.V. is headquartered in Rotterdam, Netherlands, indicating the European involvement in the deal.
Industry
- Chemicals and Ingredients Distribution – The article discusses IMCD's strategic acquisition to strengthen its portfolio, focusing on the distribution of specialty chemicals and ingredients.
- Life Sciences – IMCD aims to expand its life sciences business, particularly in nutrition, nutraceutical, and pharmaceutical ingredients.
- Food and Nutraceutical Ingredients – Daoqin specializes in distributing ingredients for food and nutraceuticals, making this acquisition significant in that industry.
Financials
- CNY 122 million – Daoqin's revenue in 2023 prior to the acquisition by IMCD.
- EUR 16 million – The equivalent of Daoqin's 2023 revenue in euros.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| IMCD N.V. | Acquirer/Buyer | Company | A global distributor and formulator of speciality chemicals and ingredients. |
| Daoqin Biological Technology (Shanghai) Co., Ltd. | Target Company | Company | A distributor of functional nutrition, nutraceutical, and food ingredients based in Shanghai, China. |
| Longyu International Trade (Shanghai) Co., Ltd. | Target Company Affiliated | Company | Part of the Daoqin acquisition targeting distribution in the nutraceutical sector. |
| Longen Biotechnology (Guangzhou) Co., Ltd. | Target Company Affiliated | Company | Part of the Daoqin acquisition focusing on the biotechnology aspect of the business. |
| Nicky Huang | Managing Director of IMCD China | Person | Responsible for comments on the strategic importance of the acquisition for IMCD's growth. |
| Jack Ning | General Manager of Daoqin | Person | Commented on the synergies and strategic benefits of joining IMCD for Daoqin. |