Azelis Attracts First Pacific Advisors Stake, Signaling Confidence Amidst Sector Headwinds

NEW YORK, NY – November 18, 2025

Azelis Group NV has become the focus of increased investor attention after First Pacific Advisors, LP (FPA) disclosed a greater than 10% ownership stake in the company. The notification, triggered under Belgian transparency laws, comes at a complex time for the specialty chemical and food ingredients distribution sector, which is currently experiencing fluctuating demand and margin pressure. While the move could signal confidence in Azelis’ long-term prospects, analysts are also scrutinizing the potential implications for company strategy and broader industry trends.

A Strategic Investment or a Value Play?

FPA, a Los Angeles-based firm known for its value-oriented investment approach and substantial $31 billion in assets under management, officially crossed the 10% ownership threshold on November 10, 2025, acquiring 24,403,067 shares. The timing of this investment is notable, as Azelis has recently reported a softening in organic growth, particularly in the third quarter of 2025. Revenue declined by 3.8% year-over-year during this period, impacting overall profitability.

“The decision to take a significant stake in Azelis likely reflects FPA’s confidence in the company’s underlying fundamentals and its belief that the current market conditions present a buying opportunity,” explained one market observer. “FPA is not known for chasing fleeting trends. Their investment suggests a long-term view and an expectation of future growth.”

However, other analysts caution that FPA’s investment could also be viewed as a value play, capitalizing on a temporary dip in the stock price. Azelis shares have experienced substantial volatility in recent months, falling to a 52-week low of €9.23 on November 18, 2025. The company’s net debt has also increased to 3.4x EBITDA, reflecting recent acquisitions and earn-out payments.

“While Azelis is a strong player in a resilient sector, it’s not immune to macroeconomic headwinds,” noted a financial analyst specializing in chemical distribution. “FPA may see this as an opportunity to acquire a stake at an attractive price, with the expectation that the company’s performance will rebound.”

Azelis Navigating a Shifting Landscape

Azelis reported €4.2 billion in turnover for fiscal year 2024, maintaining stability compared to the previous year. Despite this, the recent quarterly results revealed a more nuanced picture. The company is facing challenges across all regions – EMEA, Americas, and Asia Pacific – with organic growth slowing and margins under pressure. This environment has prompted Azelis to focus on cost optimization and strategic acquisitions.

“The specialty chemical distribution market is becoming increasingly competitive,” said a source familiar with the industry. “Companies are facing pressure from both larger players and smaller, niche distributors. Azelis is responding by expanding its service offerings, strengthening its relationships with key suppliers, and pursuing targeted acquisitions.”

The company's recent acquisition activity demonstrates this strategy. While driving up net debt, these purchases are aimed at bolstering Azelis’ market position and expanding its geographic reach. However, the integration of these acquisitions and the realization of synergies will be crucial for driving future growth. The recent departure of the CFO, Thijs Bakker, also adds a layer of uncertainty.

Potential Conflicts and Industry Dynamics

While FPA’s investment in Azelis is generally seen as a positive development, some analysts have raised concerns about potential conflicts of interest. FPA holds a significant stake in International Flavors & Fragrances Inc. (IFF), a major global player in the flavors, fragrances, and nutrition sectors. This overlap could create competing interests within the broader food and nutrition ingredients value chain. Though Azelis operates primarily as a distributor and IFF as a manufacturer, the potential for competition exists.

“It’s not necessarily a direct conflict, but it warrants scrutiny,” explained one industry expert. “FPA needs to ensure that its investments in both companies are aligned and that neither entity is disadvantaged.”

Beyond this specific concern, the broader specialty chemical distribution market is undergoing a period of consolidation. Larger players, like IMCD and Brenntag, are actively acquiring smaller distributors to expand their market share and service offerings. This trend is likely to continue, creating both opportunities and challenges for companies like Azelis. The pressure to innovate, improve efficiency, and offer value-added services will be paramount for success. The increasing emphasis on sustainability and responsible sourcing is also shaping the industry landscape, with companies facing growing pressure from customers and regulators to adopt more environmentally friendly practices. FPA’s long-term investment strategy will likely consider these evolving dynamics.