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.
“Through this planned transaction, Clariant will achieve its goal to actively participate in the consolidation of the leather chemicals industry by creating the global leader”, CEO Hariolf Kottmann said. “For Clariant, the proposed transaction marks the last big step in repositioning the portfolio. The group is now in a better position to exploit its strong market presence and intensify growth by focusing on customers and innovation”, Kottmann added.
Huub van Beijeren, CEO of Stahl, said, “This transaction would expand Stahl’s geographic coverage and its product range even further, so as to respond even better to customer needs. It would strengthen Stahl’s leadership position in leather-finishing products, both in terms of its market share and its range of technical solutions.”
Repositioning the portfolio is an essential part of Clariant’s profitable growth strategy. To achieve the targets set for 2015, Clariant will focus on markets with future perspectives and strong growth rates and on businesses that have a competitive position, resulting in strong pricing power. In this context, the company has divested the Textile Chemicals, Paper Specialties and Emulsions businesses end-September and signed an agreement to sell the Business Unit Detergents & Intermediates in October. With the proposed divestment of the Leather Services Business Unit to Stahl, the repositioning of Clariant’s portfolio will be completed in the coming quarters.
In full-year 2012, the Clariant Leather Services business generated CHF 266 million in reported sales and a reported EBITDA before exceptional items of CHF 24 million. The business employs 550 employees in 24 countries world-wide, predominantly in Germany, India and Italy.