Sell or buy a tannery
The European tannery industry is still a fairly fragmented industry. The large corporate buyers are not very active in buying tanneries across Europe. Very often the tanneries are still family businesses. Private Equity Groups have not yet consolidated the market.
We help business owners of tanneries directly in the sale or purchase of a tannery. Corporate Finance in Europe knows the European tannery industry well. We are also open to hel PE (Private Equity) Groups in the consolidation of the European tannery industry.
Cfie knows how to sell a tannery
Corporate Finance in Europe is well informed about m&a around tanneries. Our country specialists speak your language and our industry specialists know your industry. If you want to buy or sell a tannery the team of Corporate Finance in Europe can help you.
Trends in the Tannery industry
- Consolidation is not yet taking place in the tanning industry….
- Environmental issues are hot due to large pollution
- Industry wants to do more business with fewer suppliers (companies leave the industry)
- Innovation is very important in order to stay competitive. Substitute products and processes for the use of waste are being designed
- The bargaining power of buyers is high and prices are hard to rise
- Integration with the slaughterhouses is important to secure good purchase prices
- Fewer players compete for growth and profitable market share
Tanneries with access to capital, innovation and good management will be most profitable and are in the best position
The European leather tanning industry
Leather tanning covers the treatment of raw materials, i.e. the conversion of raw hide or skin into leather, a stable material, and finishing it so that it can be used in the manufacture of a wide range of consumer products.
The leather tanning industry uses hides and skins - by-products from the meat and dairy industry - which would otherwise have to be disposed of by other means, such as landfills and incineration. Leather is the tanning sector's fundamental output. It is an intermediate industrial product, with applications in downstream sectors of the consumer goods industry. Footwear, garment, furniture, automotive and leather goods industries are the most important outlets for EU tanners' production.
The processing of hides and skins also generates other by-products which find outlets in several industry sectors such as pet and animal food production, fine chemicals including photography and cosmetics, and soil conditioning and fertilisers. Companies that use these by-products through new innovative processes will be winners.
Tanneries in the European Union are typically family-owned, small and medium sized enterprises. Regional concentration is strong, and the industry often plays a key role in the local economy. In the context of global competitiveness, particular attention is being devoted to the opportunities and risks for the European leather tanning industry in an enlarged European Union. The integration of leather and tanning businesses of new Member States is ongoing and will induce further structural adjustment, not least because one of the main comparative advantages of the new Member States - low labour costs - is bound to decrease over time.
The leather tanning industry is a global industry, and EU tanners depend highly on access to raw materials and to export markets. Even if, in general, the share of the EU in the world markets is tending to shrink with the development of the leather industry in other regions of the world such as Asia and the Americas, the EU tanning industry is still the world's largest supplier of leather in the international market place.
The Future Of The Leather Industry
To prosper in the future, European tanneries must remain at the forefront of technological development. It is imperative that they establish co-operation within the EU and continue to participate in future R&D activities. The European leather industry and scientists working for the industry are committed to reducing the environmental impact from the tanning process, and also to improve the quality of the product. There are many more tanning technologies that have been substantially improved in recent years.
Over the course of the last two decades, the European leather industry has developed innovative clean technologies bringing sustainable solutions to complex problems. The combination of science and the leather industry will continue to improve the environmental performance of the industry, and thereby improve the quality of life for European citizens.
If you want to sell your tannery please contact us at tannery@corporatefinanceineurope.eu
