LANXESS is selling its organic leather chemical business to TFL via an agreement effective from 12th August’20. TFL is a global supplier of leather chemicals and a portfolio company of US investment company Black Diamond Capital Management, L.L.C.
The purchase price comprises a fixed component of EUR 80 million and a performance-related component of up to EUR 115 million. Additionally, TFL will assume certain liabilities associated with the business. The transaction is still subject to the approval of the relevant authorities. LANXESS expects the transaction to close around mid-2021.
Matthias Zachert, Chairman of the Board of Management, LANXESS said: “We are convinced that the transfer to TFL will open up new growth and development prospects for the business and will thus significantly strengthen it. At the same time, we are making LANXESS somewhat more independent from the automotive industry, a key target industry for leather products.”