Nov 7Liked by ToffCap

Great description. Very insightfull. Thanks for sharing.

Expand full comment

Thoroughly enjoyed your overview of the specialty chemical distribution industry! Thank you!

Expand full comment

Hi Toffcap, thank you so much for this great piece. Over the years, your VIC writeups and posts on your old blog have given so much to me and I cannot thank you enough. And thank you for making them free as well (although if you monetized them, I would be more than happy to oblige).

Quick question about the market: What gives you confidence that the pure play specialty chemical players such as IMCD and Azelis will gain market share/grow faster than Brenntag? Also, do you have any thoughts on how they can improve margins going forward? Looks like they have been doing so historically, but since economies of scale doesn't apply due to the near-0 fixed costs, I don't see how their profits don't just scale with revenue growth.

Finally, do you think the valuation gap to Brenntag is unwarranted? I understand Azelis is a better business but the gap seems too much to justify.

Thank You!

Expand full comment