Univar expects cost savings from acquisition

Univar states that it expects synergies to produce annual savings of $15 million (£7.5 million) from its recent acquisition.

The company purchased Chemcentral Corporation earlier this year and states that the financial benefit from this will be realised in full in the 2008 fiscal year.

Savings are expected in administrative consolidation and integrating the two companies on a common IT platform.

Forbes reports that Univar believes the main benefits of the acquisition to be market growth opportunities as opposed to cost savings.

The news comes as Univar exhibits the commercial advantages of its one-stop-shop solutions when presenting its products in Nuremberg at the European Coatings Show.

Marc Demoulin, Univar European industry manager, commented: "Univar offers a single source of supply to the surface coatings sector, combining complete product and services portfolios with formulation advice and development expertise in compliance with stringent environmental requirements.

"We are looking forward to the opportunities that exhibiting at the European Coatings Show will provide in strengthening our position in this key market."