BASF and Stahl have signed an agreement 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.
Under the terms of the agreement, BASF will receive a 16% minority stake in the Stahl Group. Furthermore, 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.