DKSH Acquires Right Base Chemicals in China, Further Expanding its Performance Materials Business

Media release

DKSH Acquires Right Base Chemicals in China, Further Expanding its Performance Materials Business

Zurich, Switzerland, November 1, 2021 - DKSH today announced that it has signed an agreement for the acquisition of a majority stake in a joint-venture with Chinese specialty chemicals distributor Right Base Chemicals (RBC). The joint-venture is in line with DKSH's strategy to solidify its leading position in the distribution of specialty chemicals and ingredients in Asia Pacific.

RBC primarily distributes additives, resins, and colorants for coating and ink applications. Founded in 1992 and based in Shanghai, RBC and its 60 employees cover the Eastern, Central, and South-Western regions of the Chinese market.

Thomas Sul and Natale Capri, Co-Heads Business Unit Performance Materials at DKSH, jointly commented: "China is by far the largest market for chemical distribution in APAC. By acquiring RBC, we are actively driving forward the market consolidation of the specialty chemicals industry. This joint-venture will further strengthen our market coverage of the coatings industry and will provide an extended platform for leveraging our key suppliers portfolio for further industries in China. We are glad to welcome all of RBC's employees and look forward to growing with them together."

RBC generates net sales of around CHF 25 million¹ at sound profitability and return on capital. Initially, DKSH will acquire a 70% stake in the joint-venture with RBC and the remaining 30% in five years. The joint-venture is expected to be immediately earnings-accretive. Closing of the transaction is expected for the fourth quarter of 2021 and is subject to certain conditions.

Windy Wang, General Manager and majority owner of RBS, added: "For close to 30 years, we have successfully served our customers in the Chinese markets. We look forward to continuing our successful journey with DKSH, by combining their international expertise and our local experience and to generate more value for our business partners."

¹ Based on a CNY / CHF exchange rate of 7.00

About DKSH

DKSH's purpose is to enrich people's lives. For more than 150 years, we have been delivering growth for companies in Asia and beyond across our Business Units Healthcare, Consumer Goods, Performance Materials and Technology. As a leading Market Expansion Services provider, we offer sourcing, market insights, marketing and sales, eCommerce, distribution and logistics as well as after-sales services. Listed on the SIX Swiss Exchange, DKSH operates in 36 markets with 32,450 specialists, generating net sales of CHF 10.7 billion in 2020. The DKSH Business Unit Performance Materials distributes specialty chemicals and ingredients for food, pharmaceutical, personal care and various industrial applications. With 48 innovation centers and regulatory support worldwide, we create cutting-edge formulations that comply with local regulations. With around 1,260 specialists, the Business Unit generated net sales of CHF 1.1 billion in 2020. www.dksh.com/pm

For more information please contact:

DKSH Holding Ltd.

Till Leisner

Head, Group Investor & Media Relations

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Demet Biçer

Manager. Group Media Relations

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Daniel Hollister

Senior Manager, Group Marketing

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