Highlights & rationale
The transaction sees Azelis acquire 100% of MK’s distribution activities. The Indian distributor is a family owned company, whose employees and management will join Azelis. MK is well respected in the local market and has strong relationships with its customers and principals. It covers food applications such as confectionery, bakery and dairy. Non-food segments include paints and coatings as well as chemicals for industrial markets. Azelis will also take over MK’s food laboratory.
Laurent Nataf, CEO and President Azelis Asia Pacific, comments: “MK and Azelis India have a solid and highly compatible supplier mix and this acquisition will help increase the value Azelis can bring to our customers and principals. It will provide us with an improved product offering and customer reach, in particular within the food industry. MK Ingredients won an award for best APAC distributor in 2016 and for exceptional business growth in 2018. This clearly demonstrates the great partnerships they have with principals, a value which is shared by Azelis.”
Aparna Khurana, Managing Director Azelis India, adds: “In 2018, Azelis opened three application laboratories in India, servicing the Personal Care, Food and CASE markets. Combining the Azelis food lab with MK’s modern and fully equipped food lab will complement our technical expertise, especially in the dairy and bakery sectors.”
Azelis’ focus on application development and innovation is an important part of its ongoing success. The company has been renowned for its innovative product formulations across the regions in which it operates, winning a number of outstanding industry awards. Azelis’ endeavours are also acknowledged by its principals and the company received 11 recognition awards in 2018.
Dipan Dalal, Managing Partner at MK Ingredients, concludes: “There is an excellent strategic fit and we are excited by the opportunity we now have for further growth in this market. We will benefit from Azelis’ speciality focus and connectivity with blue chip principals on a global level, whilst the new setup will offer a much wider product portfolio and know-how to our customers. Furthermore, Azelis has a well-established operating platform and logistics expertise which will accelerate our service efficiency.”
The acquisition of MK illustrates the support provided by EQT since the initial acquisition of Azelis. EQT is confident that the expanded range of services and global reach provided by this acquisition will continue to bring benefits to customers and principals of the combined group.