CASE STUDY

Receivables Purchase Programme

Giant German Chemicals Distributor Raises €300m

BRENNTAG - Mülheim an der Ruhr, Germany
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Providing the key link between chemical manufacturers and users, Brenntag is the market leader in global chemicals distribution. Brenntag operates a global network with more than 550 locations in 74 countries. With its global workforce of about 15,000 employees, the company generated sales of EUR 10.5 billion (USD 11.6 billion) in 2016.  

When planning a €300 million trade receivables purchase programme, Brenntag initially engaged Demica to collect and analyse historical receivables data of multi-jurisdictional operating companies and to prepare a structure note. Following the success of the initial engagement, Brenntag appointed Demica to advise it on the programme and support its dealings with the potential funding banks, legal advisors and others involved in the financing programme.

“Demica’s expertise and technology platform have consistently proven themselves over 10 years. We would not have been able to implement or manage the programme without them.”
Thomas Langer
— Vice President Corporate Finance & Investor Relations, Brenntag

Involving 17 Brenntag subsidiaries across Europe and the US, the multi-jurisdictional, multi-currency programme required complex receivables tracking and reporting which Demica has delivered using its sophisticated technology platform. The global trade receivables purchase programme enabled the company to raise alternative sources of funds at lower cost than senior unsecured credit facilities, reducing client’s cost of funds.

€300m
Size of facility
11 years
Length of relationship
17
Number of subsidiaries