Core Viewpoint - Wendel has agreed to sell its stake in Stahl, a leader in specialty coatings for flexible materials, to Henkel for an enterprise value of €2.1 billion, resulting in estimated net proceeds of €1.2 billion for Wendel, reflecting an annualized IRR of over 15% since 2006 [2][3]. Company Overview - Stahl is recognized as the global leader in specialty coatings for flexible materials, benefiting from favorable market trends, particularly in premium consumer segments, and strong exposure to high-growth regions like Asia [5]. - Under Wendel's ownership from 2006 to 2024, Stahl's global sales increased from €316 million to €930 million, nearly tripling, supported by both organic growth and strategic acquisitions [6]. - Stahl's adjusted operating income grew fourfold from €44 million to €181 million, with the adjusted operating margin expanding by 550 basis points to 19.5% in 2024 [7]. Transaction Details - The transaction values Stahl at a multiple of 6.6 times Wendel's total investment since 2006, including €427 million of past proceeds due to Stahl's strong cash generation [3]. - The sale involves Wendel (68.5% of the capital), BASF (16.1%), Clariant (14.6%), and other minority shareholders, and is subject to regulatory approvals and customary closing conditions [4]. Strategic Transformation - Stahl has completed a multi-year strategic transformation, evolving into a pure-play specialty coatings formulator by divesting its wet-end leather chemicals activities, which now operate under a standalone company named Muno [9]. - The company has established itself as an ESG frontrunner, achieving four consecutive Ecovadis Platinum ratings since 2021 and aligning its product portfolio with customer sustainability expectations [8]. Future Outlook - The transaction aligns with Wendel's capital allocation strategy and is expected to enhance long-term value creation through private asset investments, allowing for a share buyback program post-2025 earnings release [12]. - Stahl's leadership position in specialty coatings is anticipated to strengthen under Henkel, leveraging Henkel's innovation capabilities to enhance customer value [10].