Permira, a leading European private equity firm, and Odewald & Compagnie, a leading German private equity firm, are pleased to announce Odewald & Compagnie´s acquisition of TFL Holding GmbH ("TFL") from Permira. TFL was created by the spin-off of the leather chemicals businesses of Röhm/Stockhausen and Ciba in 1996 and since then TFL has developed into one of the world´s leading leather chemicals groups. TFL´s management team is led by Heider Krenz and Peter Schaller. Permira acquired the business in March 2001 through an MBO.
Nicola Volpi, Partner of Permira, said: "This deal represents a perfect conclusion of the partnership between Permira Funds and TFL management. The management team, in a very short period of time, has expanded the product range and geographic reach of the Company as well as enhanced profitability through organic means, strategic acquisitions in Italy, US and India and the start-up of a green-field factory in China. Odewald & Compagnie are acquiring a strong, focused and profitable business".
Despite difficult market conditions in recent years, TFL has been able to continue to expand sales in its core business and achieved sales of 250 m in 2002. The company, headquartered in Weil am Rhein, Germany has operations in 17 countries, providing application and service systems to the leather processing industry with innovative chemicals, dyes and finishes.
Heider Krenz and Peter Schaller, co-Presidents of TFL, commented: "The partnership between Permira Funds and the TFL management team has been a great success. The new partnership with Odewald & Cie is an exciting opportunity and will allow us to achieve TFL´s continued growth and success".
August J. P. von Joest, Partner at Odewald & Cie, added: "TFL has an excellent track record and potential. We are looking forward to partnering with the management team in order to further develop the business."
Permira was advised by Credit Suisse First Boston. Societe Generale arranged and underwrote the acquisition finance for Odewald. Intesa BCI had arranged and underwritten acquisition finance for Permira´s original acquisition of TFL.
Permira is a leading European private equity firm. Permira acts as adviser to the 17 Permira Funds, totalling nearly ´6 billion, which have been raised since 1985. These funds have invested in over 250 transactions in 15 different countries, in companies across a variety of sectors and geographies, at all stages of the business lifecycle.
Odewald & Compagnie, which was founded in 1996 by Dr. Jens Odewald, is a leading investor in established, high-growth medium-sized companies domiciled in German-speaking countries. Its first fund was closed with a capital of 110 million in 1998. The fund has since invested in six companies and 16 add-on acquisitions. In 2001, Odewald achieved final closing of a new fund of more than ´ 400 million.
TFL is a leading provider of leather chemicals worldwide and was formed as a joint venture between Ciba-Geigy, Röhm and Stockhausen on 1st January 1996. On 15th March 2001 Permira acquired TFL.
TFL is active with own companies on all continents and offers the whole range of speciality products required for the production of leather, from beamhouse to finishing. TFL is the only chemical company of its size exclusively dedicated to the leather industry, on a worldwide basis.