Clariant international, a world leader in specialty chemicals, is planning to sell its Leather Services business to Stahl. Stahl Holdings B V, majority-owned by Wendel Group, is a Dutch company providing high quality chemicals, dyes and coatings for leather and other applications. 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 Chemicals (India) is active in Leather service business and this has contributed about 16% of net sales revenue of the Company for the year 2012. The proposal to divest its leather service business will be considered by the Board and will be subject to appropriate approvals, as may be required under Companies Act, 2013.
In the proposed transaction, Clariant would receive 23% of the shares of Stahl and a cash payment of approximately CHF 85 million in exchange for the sale of its business to Stahl, valuing Clariant’s Leather Services business at approximately 7.5 times estimated EBITDA. Subject to the necessary regulatory approvals and employees consultations, the transaction could be finalized in 2014. Wendel would remain the principal shareholder of Stahl with approximately 70% of Stahl’s capital.