Stahl Group to acquire BASF Leather Chemicals business
Stahl has signed an agreement to acquire BASF Leather Chemicals assets, a branch of BASF Performance Chemicals Division.
Under the deal, BASF will receive 16% of the equity of Stahl and €150m in cash as consideration for this transaction.
Following this acquisition, Stahl will takeover all activities of BASF Leather Chemicals business, which includes a manufacturing site in Spain and nearly 210 employees.
Stahl CEO Huub van Beijeren said: “These are exciting and challenging times for the chemical industry in terms of sustainability and innovation. We believe we can only make a real difference if we can work on a large-scale within the industry.
“The signing of this agreement enables us to accelerate the process of creating a more transparent sustainable supply chain as we share the same vision on reducing the environmental footprint linked to our activities.”
The acquisition is expected to strengthen Stahl chemical business and open new market opportunities for the company.
Beijeren added: "By combining our forces, we will have an even stronger product portfolio with more innovative solutions enabling us to serve our global clients even better."
BASF leather chemical business offers variety of chemicals to automotive, apparel and Accessories, home interior and lifestyle industries.
Last year, BASF’s leather chemicals business generated sales of around €200m.
The acquisition is expected to close in the last quarter of this year, subject to relevant authority approval and employee consultations.
After the completion of this deal, Wendel will continue to remain the dominant shareholder of Stahl with 63% interest.
The remaining stake of the company lies with Clariant (19%) and other minority shareholders.
Image: BASF headquarters in Germany. Photo: courtesy of Gewetz.