Wendel Mulls $2.1 Billion Deal to Sell Chemical Giant Stahl

French investment firm Wendel SE is considering selling its 68% stake in Stahl Holdings BV, a Dutch chemical maker specializing in coatings and surface treatments for materials such as leather, plastics, and textiles. The potential sale could value Stahl at up to €2 billion ($2.1 billion), according to the media reports. The deal, still in its early stages. Wendel is exploring the option as part of its broader strategic shift, which has included divesting non-core assets and focusing on expanding its asset management business.

Wendel acquired Stahl in 2006 in a joint deal with Carlyle Group for approximately €520 million. Since then, Stahl has become a leading player in the chemicals industry, particularly in the production of specialty chemicals for the leather industry, including treatments for car seats, handbags, and other high-end consumer goods. Stahl's portfolio also includes surface treatments for textiles and plastics. The company posted approximately €914 million in sales last year and has continued to expand through strategic acquisitions. Stahl acquired BASF SE’s leather chemicals unit in 2007 and purchased a similar business from Switzerland’s Clariant AG, further solidifying its position in the industry.

In recent months, Stahl has been refocusing its operations. The company agreed earlier this year to sell its wet-end leather chemicals business to private equity firm Syntagma Capital, a move that aligns with its goal to transform into a pure-play specialty coatings company for flexible materials. This shift is seen as part of a broader trend in the chemical sector, where companies are streamlining their portfolios and focusing on high-growth, high-margin segments.

Wendel’s decision to explore a sale of Stahl follows its broader strategic plan to evolve its investment portfolio. The firm has been transitioning towards a more diversified business model with a focus on asset management. In line with this strategy, Wendel acquired a majority stake in UK-based buyout firm IK Partners earlier this year and agreed in October to acquire a majority stake in U.S. private credit lender Monroe Capital Corp. for $1.13 billion. The sale of Stahl, if it proceeds, could further Wendel's efforts to raise capital and refocus on managing third-party assets.

The private equity firm had previously considered various strategic options for Stahl, including an initial public offering (IPO) or a sale, but chose to explore the sale option considering favourable market conditions. This potential sale would add to the ongoing dealmaking activity within the chemicals sector, where other private equity firms are also making moves. Carlyle Group, which also holds a stake in Stahl, is reviving plans for an IPO of specialty chemicals producer Nouryon, while separately exploring a sale of Nobian, a chemicals unit that was spun off from Nouryon in 2021.

Stahl’s potential sale could also be a significant event in the global chemicals market, where consolidation and reshaping have been prominent trends over the last few years. For Wendel, selling its stake in Stahl would mark the exit of a long-term investment and provide an opportunity to allocate resources into its growing asset management business. While talks are still in the early stages, the sale would likely attract significant interest from private equity firms and strategic buyers, as the specialty chemicals market continues to see strong demand, particularly in high-value sectors like automotive, fashion, and flexible materials.