Engine Capital has taken a 1% stake in Brenntag SE and is calling on the German chemicals distributor to prioritize a separation of its specialties unit, a move the activist believes could double Brenntag’s share price.
Brenntag’s specialties unit “will not realize the same valuation multiple as other pure-play specialty peers due to the conglomerate discount,” Engine Capital Managing Partner Arnaud Ajdler and Partner Brad Favreau said in a letter, a copy of which was reviewed by Bloomberg News.
