Clariant AG: Clariant plans to divest Leather Services Business to Stahl
October 30, 2013 - London
Clariant AG /Clariant AG: Clariant plans to divest Leather Services Business to Stahl. Processed and transmitted by Thomson Reuters ONE.The issuer is solely responsible for the content of this announcement.
Muttenz, October 30, 2013 - Clariant, a world leader in specialty chemicals, announced today that it plans 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.
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.
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Clariant is a globally leading specialty chemicals company, based in Muttenz near Basel/Switzerland. On December 31, 2012 the company employed a total workforce of 21,202. In the financial year 2012, Clariant recorded sales of CHF 6.038 billion for its continuing businesses. The company reports in four business areas: Care Chemicals, Catalysis & Energy, Natural Resources, and Plastics & Coatings. Clariant's corporate strategy is based on four pillars: managing businesses for profitability, research & development and innovation, growth in emerging markets, and repositioning of the portfolio.
Stahl is a customer-focused company that specialises in providing high quality chemicals, dyes and coatings for leather, as well as flexible and non-flexible substrates for performance coatings, textiles and related products. Stahl's products are applied in automotive, upholstery and fashion products, as well as in industrial applications. Products have been well-recognised internationally for many decades already and enjoy an excellent reputation for quality. Stahl operates 8 manufacturing sites and some 30 strategically located technical service laboratory facilities world-wide and employs some 1,250 people in more than 28 countries many of whom are engaged in basic research and development of new products and processes. More than one quarter of them are dedicated technical experts based at application laboratories offering top-level local custom-made service wherever our customers are located throughout the world.
Wendel is one of Europe's leading listed investment firms. The Group invests internationally, in companies that are leaders in their field, such as Bureau Veritas, Saint-Gobain, Materis and Stahl. Wendel plays an active role as industry shareholder in these companies. It implements long-term development strategies, which involve boosting growth and margins of companies so as to enhance their leading market positions. Through Oranje-Nassau Développement, which brings together opportunities for investment in growth, diversification and innovation, Wendel is also a shareholder of Van Gansewinkel Groep in the Netherlands, exceet in Germany, Mecatherm and Parcours in France and IHS in Africa. Wendel is listed on Eurolist by Euronext Paris.
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