Stahl completes restructuring and reduces debt
04/03/2010
Leather sector speciality chemicals group Stahl has completed a financial restructuring exercise.
In November, French private equity group Wendel proposed an injection of capital for Stahl, of which it owned 48% at the time, through one of its subsidiaries, Oranje-Nassau Groep.
Wendel's new chief executive, Frédéric Lemoine, told the Financial Times that the group would provide support to the companies in which it has invested to help them take advantage of the global economic recovery whenever it comes. He said a new injection of cash into Stahl would help the leather chemicals company reduce debt.
On March 3, Stahl announced that Wendel had increased its shareholding to 92%, by purchasing Carlyle’s shareholding and contributing EUR 60 million.
As a result of the restructuring, Stahl's debt has now reduced from EUR 350 million to EUR 195 million, while senior lenders have provided a new EUR 25 million working capital facility.
Stahl said it had experienced "a progressive recovery in trading and profitability since 2008, with a particularly strong fourth quarter of 2009 and a promising start to 2010", and that the restructuring would support the company's growth globally.
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