Clariant Chemicals (India) Ltd, a global leader in specialty chemicals, plans to sell its leather services business to Stahl Holdings B.V., a member of France-based Wendel Group, as per a stock market disclosure.
Financial details of the divestment are not disclosed. This business contributed around 16 per cent of net sales of the company in 2012. Clariant Chemicals (India) posted net sales of Rs 1,100 crore last year.
This is part of a global divesture of leather services business by the Swiss specialty chemicals group. The global stock cum cash deal would involve Clariant receiving around $96 million besides 23 per cent of the shares of Stahl.
The combination of both businesses would create a global leader in leather chemicals with a larger and higher growth profile than the standalone entities and with significant synergy potential, according to a press statement.
Stahl specialises in providing coatings for leather, flexible and non-flexible substrates, textiles and related products. It also produces chemicals and dyes for the processing of leather. The group's business comprises four divisions, including Stahl. Stahl Holdings is the parent company for all of its subsidiaries. Wendel Group, provides high quality chemicals, dyes and coatings for leather and other applications.
Clariant Chemicals has production facilities for manufacture of textile chemicals and produces paper specialties and emulsion products at its Roha plant.
It has been selling less profitable businesses in the recent past. Earlier it sold its international textile chemicals, paper specialities and emulsions businesses, including its Indian operations, to SK Capital for around $550 million.
In March 2012, Clariant Chemicals had sold its entire stake in Mumbai-based Chemtreat Composites India Pvt Ltd to AZ Electronic Materials Services Ltd for $1.1 million.
Clariant Chemicals shares last traded at Rs 566.55 each, up 1.38 per cent on the BSE in a strong Mumbai market on Wednesday.
(Edited by Joby Puthuparampil Johnson)