ESSEN (dpa-AFX) - Chemicals trader Brenntag is taking the next step in making its two divisions Specialties and Essentials more independent. Thus, a new management structure for both divisions will be introduced, to start in 2024, the company announced in Essen on Thursday. Both divisions are to have an executive committee, headed by a chairman. In addition, certain functions, responsibilities and activities will be shifted from the corporate level to the business units, it said.

"We are equipping the business units with the lean and efficient processes, resources and capabilities they need to manage their businesses more independently and autonomously, improve their business results and accelerate their dedicated growth initiatives," said Group CEO Christian Kohlpaintner, commenting on the move.

Ewout van Jarwaarde, the current chief restructuring officer, is to become chairman of the Essentials division on August 1. He succeeds Steven Terwindt, who will not extend his contract with Brenntag, which runs until the end of July. In addition, the Essentials division will in future consist of the two units Life Science and Material Science. Michael Friede, who is already responsible for Specialties on the Board of Management, will take over as Chairman of the division.

In the Specialties Business Unit, Brenntag focuses on the sale of ingredients for selected industries. In Essentials, the company markets process chemicals.

There will be a capital markets day in late fall 2023, where Brenntag plans to announce "our conclusions on the strategic options and future path for Brenntag and our divisions," Chief Financial Officer Kristin Neumann said. At that time, Brenntag also plans to release more information on the expected financial details as well as the reporting structure.

As part of the changes, the group's board of management will also be reduced from five to four members following Terwindt's departure, it said. In addition to Kohlpaintner and Neumann, it will include van Jarwaarde and Friede.

Brenntag has recently come under the scrutiny of activist investors. In particular, the British financial investor Primestone, which holds a good two percent of Brenntag, has attracted attention. Both Primestone and the US hedge fund Engine Capital are interested in splitting Brenntag into two divisions, one for specialty chemicals and one for basic chemicals. The investors hope that this will lead to a rapid increase in value./nas/ngu/he