Clariant sells leather business to Stahl
30/10/2013
“The combination of both businesses would create a global leader in leather chemicals with a higher growth profile than the stand-alone entities and with significant synergy potential,” Clariant said in a statement.
In the proposed transaction, Clariant would receive 23% of the shares of Stahl and a cash payment of approximately CHF 85 million ($95 million), valuing the leather services business at approximately 7.5 times estimated EBITDA. Wendel would remain the principal shareholder of Stahl with approximately 70% of Stahl’s capital.
Stahl said in a statement: "The contemplated project is to create a joint venture between two of the leading suppliers to the global leather industry in terms of service, technology and innovation through the transfer from Clariant to Stahl of the respective production plants and facilities worldwide, as well as the Procurement organisations. It would also encompass the associated R&D and application departments, sales and marketing as well as the support functions.
"The proposed new venture would continue to focus on the same core strengths of production, innovation and the sale of high performance products and services, taking advantage of the strengths of both parties to provide even more value to our partners than today. The focus would remain on excellent service, reliability in quality and supply as well as product innovation."
In full-year 2012, the Clariant leather services business generated CHF 266 million ($300 million) in reported sales and a reported EBITDA before exceptional items of CHF 24 million. The business employs 550 employees in 24 countries world-wide, predominantly in Germany, India and Italy.
Huub van Beijeren, CEO of Stahl, said: “This transaction would expand Stahl’s geographic coverage and its product range even further, so as to respond even better to customer needs. It would strengthen Stahl’s leadership position in leather-finishing products, both in terms of its market share and its range of technical solutions.”
Clariant announced its intention to sell the business in November 2012.
The deal is the latest in the leather chemicals sector. In September, TFL announced it was being bought by US-based asset management firm Black Diamond Capital Management.
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