After previous unsuccessful efforts to divest its leather business, BASF has found a buyer in the Netherlands-based Stahl Group. To facilitate a deal, the German chemical giant has agreed to take a 16% minority stake in the leading supplier of process chemicals for leather products and performance coatings in which French private equity investor Wendel and Swiss specialty chemicals producer Clariant currently hold stakes.

The transaction is due to conclude in the 2017 fourth quarter, subject to regulatory approval. Following the deal with BASF, Wendel’s share of Stahl will fall from 63% to 73% and Clariant’s stake shrink to 19% from 23%. The remaining shares are in private hands, including those of Stahl managers.

As part of the agreement, BASF said it has agreed to supply “significant volumes” of leather chemicals to Stahl, leveraging mid- to long-term supply agreements. Along with BASF’s global leather chemicals business, Stahl will also pick up a production site in L’Hospitalet, Spain and 210 employees, some 110 of are based in Asia.

BASF’s leather chemicals business, currently headquartered in Singapore, is part of its Performance Chemicals division and active along the entire industry value chain. The four-way partnership “is the right step for BASF’s successful leather chemicals business,” said its managing board member Michael Heinz. “With complementary strengths, BASF and Stahl are creating a leading company in leather chemicals with a strong focus on innovation,” he added.