Investing.com– French investment firm Wendel (EPA:MWDP) SE is considering selling its stake in Stahl Holdings BV, a Dutch chemical maker specializing in coatings and surface treatments, Bloomberg reported on Monday.
Stahl, which produces chemicals for materials such as leather used in handbags and car seats, could be valued at up to €2 billion ($2.1 billion) in the deal, the sources told Bloomberg, speaking on condition of anonymity as the information is confidential.
Wendel acquired Stahl in a €520 million deal alongside Carlyle Group (NASDAQ:CG) Inc. in 2006, and currently owns a 68% stake in Stahl. The private equity firm had previously explored a strategic review of its investment in Stahl, including options for an IPO or a sale, according to the report.
Last year, Wendel unveiled a new strategy to grow a third-party asset management business. Earlier this year, it acquired a majority stake in UK-based buyout firm IK Partners, and in October, Wendel agreed to purchase a majority stake in U.S. private credit lender Monroe Capital Corp (NASDAQ:MRCC) for $1.13 billion.
Meanwhile, Stahl had agreed to sell its wet-end leather chemicals business to Syntagma Capital, in a bid to become a pure-play specialty coatings maker for flexible materials.
A potential sale of Stahl could add to the recent dealmaking activity in the chemical sector, the report added. Carlyle has revived plans for an IPO of specialty chemicals producer Nouryon and is separately exploring a sale of its spun out unit Nobian, Bloomberg had reported in September.