Distributor of specialty chemicals and food ingredients Azelis is set to acquire 100 percent of the outstanding shares in Megafarma, a premium Mexican specialty distributor for pharma, food and veterinary industries. Headquartered in Mexico City, Mexico, the company represents raw material producers and serves a sizeable number of customers in the Mexico region. The integration of Megafarma will provide Azelis access to a stable platform for growth in the global specialty chemicals and food ingredients distribution business. The transaction is expected to be completed within the next month.
“Being the most populous country in the Americas after the US and Brazil, and with a large specialty chemicals market, Mexico is an excellent entry point into the Spanish speaking part of America, where Azelis was not yet present. Local presence in Mexico will allow us to add new mandates of food and pharma principals we already work within other geographies. The combined product and first portfolio and geographic spread will allow us to accelerate our growth strategy and solidify our position as a preferred partner in the specialty chemicals business,” explains Dr. Hans Joachim Müller, Azelis CEO and President.
Megafarma was founded in 1973 to fill the needs of a growing Mexican pharmaceutical market. The company grew gradually over the years and has become a well-known player in the pharma and food markets in Mexico. The headquarters of the company is located in Mexico City, and Megafarma also has a presence in Guadalajara and Monterrey.
“Joining Azelis means becoming part of a growing international group, which is a milestone in our company’s development. We share similar strategies and culture and I am confident that Megafarma will continue to thrive under its new ownership. Our people look forward to joining forces with their Azelis colleagues and building a unique product and principal portfolio to benefit our customers and employees,” says Martin Hernandez, Megafarma General Director.
Frank Bergonzi, Azelis Americas Chief Executive Officer & President, also comments: “We have been impressed by the business model and the strong management team at Megafarma. They are financially solid and have shown a solid track record over the years, with double-digit sales growth between 2016 and 2018. Like Azelis, it is highly focused on specialties. We expect to expand the strategic supplier relationships we have in the US and Canada in the food and pharma segments.”
Through the acquisition of Megafarma, Azelis Americas will increase its Life Sciences footprint and will have the platform to bring other Azelis key market segments into Mexico, such as Plastics, Foam, CASE, Personal Care and Homecare & Industrial Cleaning, according to Bergonzi.
“We are excited to have the Megafarma employees join the Azelis Americas family, with the team and all operations remaining in place,” he adds.
Megafarma was advised by Venser (Venture Advisory Services). The acquisition of Megafarma illustrates the support provided by EQT since the initial purchase 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 the principles of the combined group.
