Netherlands-based Stahl Group has completed the purchase of BASF’s leather chemicals business. The German group retained a 16% stake in the Waalwijk-based company in order to facilitate the deal, after previous efforts to attract a buyer failed. Other investors in Stahl are French private equity group Wendel and Swiss specialty chemicals company Clariant.

Stahl, which processes chemicals for leather, performance coatings and polymers, takes over all 210 of BASF’s employees and a production site in Spain. The Dutch firm said the acquisition gives it a stronger product portfolio, increased innovation power and more transparency in the supply chain.

“The chemical industry is changing at a rapid pace,” said Stahl’s CEO, Huub van Beijeren. “To stay ahead of the game, we need a certain size to invest in the two key topics in our industry: next-generation innovations and sustainability.” Michael Costello, director of sustainability, added that as a larger company, it would have more influence to push through initiatives such as eliminating restricted substances, reducing greenhouse gases and using natural raw materials.

With the acquisition, Stahl will have total combined sales of between €870-890 million and an EBITDA between €200-210 million (estimated pro forma 2017). In 2016, Stahl posted sales of €656 million and EBITDA of €156 million.