French investment firm Wendel SE is reportedly considering selling Stahl Holdings BV, a company known for producing chemicals used in coatings and surface treatments, according to sources familiar with the matter.
The potential sale, which could take place as soon as next year, is currently being evaluated, with financial advisors from JPMorgan Chase & Co. and Morgan Stanley working on the deal.
The deal, if it proceeds, could see Stahl valued at up to €2 billion (approximately $2.1 billion). However, the sources, who requested anonymity due to the private nature of the discussions, indicated that this is still in the early stages.
It is also possible that Wendel could choose not to move forward with the sale. Representatives from Wendel, JPMorgan, and Morgan Stanley declined to comment on the situation, and Stahl’s spokesperson did not immediately provide a response.
Stahl manufactures chemicals primarily for coatings and surface treatments on various materials, including leather. The company generated €914 million in sales last year.
It has significantly grown its business through strategic acquisitions, including the purchase of BASF SE’s leather-chemical unit and a similar business from Clariant AG of Switzerland.
Earlier this month, Stahl also agreed to sell its wet-end leather chemicals business to Syntagma Capital as part of a plan to streamline its focus and become a specialized coatings maker for flexible materials.
Wendel, along with Carlyle Group Inc., acquired Stahl in 2006 for €520 million. After a debt restructuring in 2010, Wendel now owns a 68% stake in the Dutch company.
Wendel had previously worked with Rothschild & Co. to review strategic options for its investment in Stahl, including the possibility of an initial public offering (IPO) or a sale.
Following these developments, Wendel’s shares fell by 0.2% in early Tuesday trading, bringing the company’s market value to around €4.2 billion.
A sale of Stahl would contribute to the growing wave of deal-making in the chemical industry. For instance, Carlyle is exploring an IPO for specialty chemicals producer Nouryon and is also considering the sale of Nobian, a company spun out of Nouryon in 2021. These moves reflect the active deal-making environment in the sector.
