Lanses Sells Organic Leather Chemicals Business to TFL

[Asia Economy Reporter Hwang Yoon-joo] LANXESS is selling its organic leather chemicals business to TFL Ledertechnik. TFL is a global leather chemicals supplier and a portfolio company of the US investment firm Black Diamond Capital Management.

On the 14th, LANXESS announced that it had signed a contract to sell its organic leather chemicals business to TFL Ledertechnik. The sale price is 80 million euros, with an additional amount of up to 115 million euros depending on performance. TFL will also assume certain liabilities related to the business. The sale process is expected to be completed by mid-2021 after approval from antitrust regulatory authorities.

Matthias Zachert, Chairman of LANXESS, said, "The transfer to TFL will open new growth and greater development opportunities for the leather chemicals business and further strengthen the business."

LANXESS’s organic leather chemicals business has supplied chemicals and solutions necessary for all pre-processing stages of leather manufacturing. It operates production facilities in Leverkusen, Germany; Filago, Italy; and Changzhou, China, as well as application laboratories and sales offices worldwide. TFL will acquire the entire LANXESS organic leather chemicals business, which includes approximately 460 employees.

With this sale, LANXESS will completely withdraw from the leather chemicals sector. It has already sold its chrome chemicals business, including chrome ore, and since the end of last year, it has classified the leather chemicals division as a discontinued operation and excluded it from performance reporting.