Exactly a year after announcing the sale of the chrome chemicals line of its leather business unit, chemicals group Lanxess has now announced the sale of the business unit’s second line, organic leather chemicals, reports Leatherbiz.
Rival German group TFL has emerged as the buyer of the Lanxess organic leather chemicals business. Both companies signed an agreement on August 12 and have said they expect to complete the sale, which is still subject to regulatory approval, by the middle of 2021.
Lanxess said the purchase price comprises a fixed component of €80 million and a performance-related component of up to €115 million. In addition, TFL will assume “certain liabilities” associated with the business.
The deal comprises three Lanxess operations for manufacturing non-chrome leather chemicals. These are in Leverkusen in Germany, Filago in Italy and Changzhou in China. It also includes laboratory facilities and sales offices around the world, with a total workforce of 460 people.
On making the announcement, the chairman of Lanxess, Matthias Zachert, said: “We are convinced that the transfer to TFL will open up new growth and development prospects for the business and significantly strengthen it.”
He said Lanxess was leaving the leather sector because it wanted to make itself more independent of the automotive industry.
Head of the leather business unit, Luis López-Remón, said this latest move sent out a strong signal about the continuity of Lanxess’s leather business, adding that the organic leather chemicals business complemented TFL’s existing business well.
Lanxess announced the sale of its chrome chemicals business to Chinese company Brother Enterprises on August 13, 2019. In November, it announced the sale to Clover Alloys of its stake in a chrome mine near Rustenburg, South Africa. The sale of its organic leather chemicals business line to TFL will complete its withdrawal from the leather industry.