As announced, Lanxess sells tanning chemicals to TFL. German giant has announced that it found an agreement for the sale of the business unit linked to leather treatment products to TFL Ledertechnik GmbH, a well-known name in the tanning world. The operation will end around mid-2021, and represents Lanxess‘ last step away from tanning chemistry. The precedents concerned the divestment of Chrome Chemicals division, and the withdrawal from the stake in the South African chromium mine.
Lanxess sells tanning chemicals to TFL
Lanxess announced the sale on August 12, 2020. The transaction provides for a price divided into a fixed component of 80 million euros and a performance-related one that may vary reaching a maximum of 115 million euros. The sale will be evaluated by the competent authorities, which should give an answer by the middle of next year. Lanxess produces tanning auxiliaries in 3 factories: Leverkusen in Germany, Filago in the province of Bergamo, Changzhou in China. Some research laboratories and sales offices around the world are also part of the unit. Under the agreements, TFL will acquire all the activities of the leather chemicals business line and the approximately 460 related employees.
Lanxess’s comment
“We are convinced that the move to TFL will open up new growth and development opportunities for the business and significantly strengthen it – says Matthias Zachert, president of LANXESS -. At the same time, we are making Lanxess a little more independent from the automotive industry, a key reference sector for leather products”.
TFL’s comment
“The acquisition will allow us to offer an unprecedented range of high-performance, innovative and sustainable solutions for the leather sector – explains Peter Amann, CEO of the TFL Group -. The expansion will support our goal of becoming a company specialised in high performance leather chemicals. And it will significantly strengthen our portfolio of finishing products and our presence in the automotive industry”. According to TFL top management, the operation will allow to employ approximately 1,200 people worldwide, with a turnover of approximately 450 million euros, and production plants in Germany, Italy, France, Brazil, India and China.
Read also:
- Lanxess says goodbye to tanning: the Leather Unit is for sale
- Lanxess’ new divestiture: chromium mine sold off
- TFL to open their Global Fashion Center in Castelfranco, Tuscany. The world’s midpoint is here
