TFL completes the acquisition of Lanxess’ organic tanning chemistry business. In other words, it announced that it had completed the transaction following the approval by the relevant authorities. The agreement between the parties arrived last year. Wolfgang Schütt, TFL CEO, said he was “excited” about the deal and “delighted to welcome our new colleagues as part of the TFL family”.
TFL completes Lanxess’ acquisition
On June 1st, 2021, the authorities gave the green light for TFL Ledertechnik GmbH to take over Lanxess’ organic tanning chemistry business. That is, the leading corporation in the supply of chemical specialties for the tanning industry. Which is part of the portfolio of the US investment company Black Diamond Capital Management. The two companies had reached an agreement in August 2020.
As Lanxess explains in a note, “the purchase price includes a fixed component of 80 million euros. In addition, the agreed mechanism of commercial working capital will lead to the payment of approximately 20 million euros, to be delivered in the third quarter. Furthermore, there will be a performance component of up to 115 million euros, to be distributed over the next 3 years”.
The whole business
TFL acquired Lanxess’ entire organic tanning chemistry business, which operates with approximately 420 employees. The combination of TFL and Lanxess businesses will employ approximately 1,200 people worldwide, with a turnover of approximately 450 million euros. “With production plants in Germany, Italy, France, Brazil, India and China, together with a presence in 90 countries – says the company in a statement – it will be able to provide truly global coverage”.
“I am thrilled that Lanxess’ tanning chemistry division is now part of TFL. The combination of the two businesses, world leaders in the sector, will allow us to better serve our customers”. How? “With an unparalleled range of highly performing, innovative and sustainable solutions for the tanning industry – says CEO Wolfgang Schütt – and we are very pleased to welcome our new colleagues as part of the TFL family”.
- Schütt is the new CEO of TFL, Amann to join the supervisory board
- TFL closes the loop and acquires Industria Chimica Fine
- And there was sale: Lanxess sells tanning chemicals to TFL