Gucci Acquires 3 Tanneries & Stahl Considers $2.1 Billion Sale - What’s Next?

Scuola del Cuoio Reports €1.5 Million In EBITDA | Henan Prosper & Colomer 1792 Complete Acquisition of Conceria Ausonia in Italy

Author

Arshad Leathernews.org
December 01, 2024

Good Morning & Welcome to our weekly newsletter! Here, we bring you the entire week's global news, insights, market research & analysis, expert insights and facts from the "leather, footwear, and leather goods" industry.

In a simplified and easy-to-understand manner, saving you time while keeping you informed and updated.

In case you missed it, here’s a look at what happened in the Global Leather & Footwear Industry last week.

LEATHER INDUSTRY NEWS

Gucci has acquired complete ownership of three tanneries under the Colonna Group, its long-time leather supplier, after holding a 51% stake since 2019. This strategic move secures Gucci’s control over key tanneries in Tuscany, Italy, ensuring higher quality and sustainability for its leather goods. The acquisition also includes a five-year non-compete clause for Colonna’s shareholders. This step aligns with Kering's broader strategy to manage its leather supply chain and enhance efficiency across its luxury brands.

According to sources, The French investment firm Wendel SE the majority stake holder in Stahl is considering the sale of Stahl Holdings BV, a leader in chemicals for coatings and surface treatments, including those used in leather. The deal, valued up to €2 billion ($2.1 billion), is in early stages, with JPMorgan and Morgan Stanley advising. Stahl generated €914 million in sales last year. If the sale happens, it would add to the growing trend of deal-making in the chemical industry. For more details, click the link below.

Henan Prosper and Colomer 1792, Chinese-Spanish leather tannery, has acquired the Italian company Conceria Ausonia to strengthen its global presence. Founded in 1946, Ausonia specializes in eco-friendly, vegetable-tanned bovine leather, producing 70,000 sqm of leather monthly. With a turnover of €12 million for 2024, this acquisition supports Colomer’s expansion into European, American, and Asian markets. The deal includes a new R&D center and tanning plant focused on sustainable leather production. This strategic move enhances Colomer's ability to meet growing demand for sustainable products.

In a recent move, Kering becomes the first company to adopt science-based targets for land and freshwater use, setting a new standard in sustainability. Announced at the COP16 summit, these targets focus on responsible water management, especially in the Arno River basin in Tuscany, and land preservation through ecosystem conservation and restoration. With brands like Gucci and Saint Laurent, Kering’s commitment to sustainability aligns with their ongoing efforts to reduce environmental impact, reinforcing their leadership in responsible luxury.

Federal Minister for Defence, Khawaja Asif, expressed disappointment over the 16-year delay in completing the Sialkot Tannery Zone (STZ). Despite Rs. 290 million in funding from 2008, the project remains unfinished. Asif warned that after December 30, 2024, no tannery will be allowed to operate outside the zone, and strict action will be taken if it isn't operational by January 1, 2025. He also pledged to raise the issue in the National Assembly and hold accountable those responsible for the delay.

FOOTWEAR INDUSTRY NEWS

Bangladesh’s leather footwear exports reached a 5-year high with a 9% increase in revenue, totaling $228.47 million from July–October. This growth is driven by competitive production costs, making Bangladeshi footwear appealing in the US, Japan, and Europe. Local companies like Jennys Shoes and Apex Footwear are leading the charge, and the industry is expected to grow 5.66% annually, reaching $3.33 billion by 2024.

LEATHER GOODS INDUSTRY NEWS

Scuola del Cuoio, the iconic leather workshop in Florence, closed FY 2024 with a 25% increase in turnover and an EBITDA of 1.5 million euros. The Gori family rewarded their 35 employees with a €2,500 bonus each. Growth was driven by U.S. customers who eagerly awaited bespoke Tuscan leather bags, showcasing the workshop’s rich tradition and craftsmanship.

INDUSTRY INSIGHTS & ANALYSIS

2 Significant Updates about Stahl caught my Attention recently & Raised a Lot of Questions About the Industry's Future (Here's Everything You Need to Know)

As someone deeply connected to the leather industry, I couldn’t help but notice the latest developments surrounding Stahl.

Here’s a quick overview:

Last week, Stahl sold its wet-end leather chemicals business to Syntagma Capital,

Shifting its focus entirely to specialty coatings for flexible materials while retaining its leather finishing business.

This move was already a surprise.

Then, just yesterday, I came across another article that took me aback

Wendel SE, the majority stakeholder in Stahl with a 68% share (which it acquired for $520 million in 2006), is reportedly considering selling Stahl.

The company is being valued at up to €2 billion ($2.1 billion).

This follows after a year of €914 million in revenue, thats almost a billion dollars in revenue so the decision doesn’t appear to be from underperformance.

Stahl has significantly grown its business through strategic acquisitions all these years, including BASF & Clariant. leather-chemical business.

Advisors from JPMorgan & Morgan Stanley are reportedly involved in this, but nothing is confirmed yet.

Clearly, decisions of this magnitude aren't made lightly.

With top tier consulting firms likely advising on this, this could point to bigger changes in the leather industry.

This raises some important questions

What’s driving this decision?

Do these chemical companies see no future in leather?

Is confidence in leather fading?

What does this mean for leather?

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❓ What do you think? Are these smart strategies or signs that the leather industry is slowly fading?

Let me know your thoughts

Thanks !

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Written & Published by Arshad | Leathernews.org

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