Stahl Group to Acquire Leather Chemicals Business of BASF SE

Stahl group announces its plans to acquire BASF leather chemicals business

Netherlands: Stahl Holdings B.V., a Netherlands based manufacturer of leather chemicals and performance coatings, has signed an agreement with BASF SE, a German chemical company, to acquire leather chemicals business of BASF’s performance chemical division. As per the deal, BASF SE would receive 16% of the equity of Stahl along with USD160.10 million liquidity as part of this transaction. Once the acquisition is completed, Stahl would take hold of all the activities of BASF leather chemicals business including a manufacturing facility in Spain with approximately 210 employees. This agreement aims at growing a more sustainable and transparent supply chain of leather chemicals across the globe in addition to making a stronger product portfolio for Stahl and its subsidiaries across the globe. The acquisition is expected to be completed by the last quarter of 2017.

TechSci Research depicts that combining the leather chemicals business for both the companies would strengthen the position of Stahl across the world. Since both BASF and Stahl are key players in the import market of leather chemicals across Asia-pacific countries such as India, China etc., it would leverage its share in leather chemicals market across this region as well. 

According to the recently published report by TechSci Research, “India Leather Chemicals Market Forecast & Opportunities, 2020”, the country’s leather chemicals market is projected to cross USD700 million by 2020. Wet-end process accounts for the highest consumption of leather chemicals followed by Beamhouse and finishing processes. In 2014, Southern states accounted for the largest market share, followed by Northern and Eastern regions, and this trend is expected to continue over next five years with Southern and Northern regions collectively accounting for over two-thirds of the country’s leather chemicals market by 2020. Favorable government regulations promoting exports of leather goods are significantly contributing towards boosting demand for leather chemicals in India. Presently, BASF, Stahl and Lanxess are some of the leading suppliers of leather chemicals in India.