Stahl Group acquires BASF Leather Chemicals business
“The chemical industry is changing at a rapid pace,” Huub van Beijeren explains, CEO of Stahl. “To stay ahead of the game, we need a certain size to invest in the two key topics in our industry: next-generation innovations and sustainability. This acquisition enables us to respond even better to these challenges.” Michael Costello, Director Sustainability, adds: “Being a larger company also accelerates the process towards a more transparent supply chain as we now have more influence to push through initiatives like the elimination of restricted substances, the reduction of greenhouse gases and the use of natural raw materials.”
Stronger product portfolio and increased innovation power
Equally important, the synergy advantages will lead to a stronger product portfolio and new market opportunities for Stahl. BASF has innovative solutions complementing Stahl’s portfolio such as a complete range of products to make high-performance waterproof leather and new polymeric retanning agents. In addition, BASF has a strong range of beamhouse products. Anup Kothari, President Performance Chemicals at BASF: “As part of Stahl Group, BASF Leather Chemicals will be well positioned for the future. With a focus on innovation and sustainability, our customers will benefit from the combined expertise along the entire leather-making value chain.”
BASF is one of the world’s leading chemical companies with approximately 114,000 employees. Stahl takes over the activities of the BASF Leather Chemicals business. This business offers leather chemicals for a broad range of industries such as Automotive, Apparel & Accessories, Home Interior and Leisure & Lifestyle.
The acquisition fits in Stahl’s growth strategy: expanding its global presence via organic growth, technology acquisitions and partnerships. This strategy has led Stahl to become the market leader in leather chemicals, performance coatings and polymers in terms of knowledge, expertise and range of technical solutions.
With this acquisition, Stahl will have a total combined sales between 870 - 890 million Euro and an EBITDA between 200 - 210 million Euro (estimated pro forma 2017). BASF received 16% of the equity of Stahl, which means the company stays closely involved and it ensures continuity of its activities in the leather chemicals industry.