Wendel's Strategic Pivot: The Sale of Stahl's Wet-End Division

Wendel, the global investment group, has announced the sale of Stahl's wet-end division, marking a significant step in its strategic journey. This transaction, subject to customary closing conditions, involves the divestment of Stahl's leather chemicals business to an affiliate of Syntagma Capital. The proposed sale is in line with Wendel's strategy to refocus on the fast-growing sector of premium coatings, further solidifying its position as the global leader in specialty coatings for flexible materials.

Pro forma for the sale of the wet-end chemicals business and the acquisition of Weilburger Graphics, Stahl's 2023 sales would amount to €786 million, EBITDA to €182 million (i.e., a 23.1% margin), and net debt would stand at €336 million. These transactions will have an accretive impact on Stahl's EBITDA margin and strengthen its growth profile. Wendel's CEO, Maarten Heijbroek, stated that the divestment completes Stahl's transformation into a pure-play specialty coatings formulator for flexible materials, allowing it to accelerate innovation and sustainability to enhance consumer experiences.

The sale of Stahl's wet-end division is a strategic move that sharpens Wendel's focus on premium coatings and ESG leadership. Pro forma for the sale, Stahl's 2023 sales would reach €786 million, with an EBITDA margin of 23.1%, indicating a strengthened growth profile. This transaction allows Stahl to accelerate innovation and sustainability, enhancing consumer experiences while complying with the highest ESG standards, as evidenced by its Ecovadis Platinum award. Wendel's commitment to ESG is further demonstrated by its investment strategy, which prioritizes businesses driven by growth megatrends such as environmental protection and technological revolutions.

The divestment of Stahl's wet-end division to Syntagma Capital allows Wendel to focus on its core specialty coatings business, potentially leading to synergies and cost savings. By exiting the leather chemicals sector, Wendel can streamline its operations and reduce overhead costs. Additionally, the transaction is expected to have an accretive impact on Stahl's EBITDA margin, indicating improved profitability. The sale also allows Wendel to reinvest capital into higher-growth areas, such as premium coatings, further enhancing its competitive position.

The sale of Stahl's wet-end division marks an important step in Wendel's strategic journey, enabling the company to focus on its core competencies and invest in growth opportunities. As Wendel continues to refine its portfolio and prioritize premium coatings and ESG leadership, investors can expect to see further strategic moves that drive value and growth.