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BASF leather chemicals business to become part of Stahl Group
BASF and Stahl have signed an agreement on March 22, 2017 to combine BASF’s leather chemicals business with Stahl Group. The transaction is subject to approval by the relevant authorities and the closing is expected to take place in the fourth quarter of 2017
BASF will supply significant volumes of leather chemicals to Stahl under mid to long-term supply agreements. The transaction comprises BASF’s global leather chemicals business, as well as the leather chemicals production site in L’Hospitalet, Spain. Around 210 positions globally are in the scope of the transaction, of which about 110 are in Asia.
“This partnership is the right step for BASF’s successful leather chemicals business,” says Michael Heinz, Member of the Board of Executive Directors of BASF SE. “With complementary strengths, BASF and Stahl are creating a leading company in leather chemicals with a strong focus on innovation.”
“Our customers will benefit as together we can leverage unparalleled strength in production, technical expertise, innovation and sustainability along the entire leather-making value chain,” says Dr. Christian Fischer, President Performance Chemicals.
The Stahl Group is a leading company in process chemicals for leather products and performance coatings, in the future held by Wendel Group, Clariant and BASF. BASF’s leather chemicals business is present along the entire industry value chain, offering innovative and sustainable solutions for all wet-end to finishing processes in the leather industry. Headquartered in Singapore, the business operates sales, production plants and research and development globally. It is currently part of BASF’s Performance Chemicals division.
BASF will receive 16% of the equity of Stahl, which is a leading company in process chemicals for leather and performance coatings. The company intends to take over all activities of BASF Leather Chemicals business, including a manufacturing site in Spain and approximately 210 employees. By combining forces of these two leading chemical companies, Stahl aims at strengthening its competitive position and improve sustainability in the industry.
“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”, Huub van Beijeren, CEO of Stahl, explains. “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”.
Equally important, the synergy advantages are numerous and will lead to new market opportunities for Stahl. “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”, van Beijeren continues.
The combination of the two businesses generated pro formal net sales of EUR 850 million and EBITDA of more than EUR 200 million (on a 2016 basis).
BASF Leather Chemicals business is a leading global supplier of chemical solutions to the leather industry. Present along the entire industry value chain, it offers innovative and sustainable solutions for all wet-end to finishing processes in the leather industry. Headquartered in Singapore, the business operates sales, production plants and research & development globally.