Recticel has entered into final agreements with Swiss-listed, Conzzeta to acquire 100% of FoamPartner in cash for an enterprise value of CHF270m, (US$296m) CHF20m of the price being payable in January, 2022.
The transaction is subject to customary conditions precedent, including antitrust approvals.
Go deeper with GlobalData
FoamPartner is a global provider of technical foam solutions in the Mobility, Industrial Specialities and Living & Care markets.
The acquisition is expected to:
- Accelerate growth in high value-added activities focused on innovation
- Enable Recticel to strengthen its European and global presence in speciality foam solutions, specifically in the faster growing APAC and North American markets
- Be accretive to group margins before synergies, as of the first full year of consolidation
- Result in EUR14m of synergy upside by 2023, with a run-rate of EUR10m achieved by the end of 2021
The FoamPartner business will be merged with the Recticel Flexible Foams division to form the new Engineered Foams business segment.
Financing is secured by a syndicated acquisition facility, which has been arranged and fully underwritten by KBC Bank and to which Belfius Bank and BNP Paribas Fortis confirmed their participation. The acquisition facility has a 3-year tenor with two 1-year extension options.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataClosing of the transaction is expected to be completed in the first quarter of 2021.
"The acquisition of FoamPartner marks an important step in Recticel's strategic portfolio reorientation," said Recticel CEO, Olivier Chapelle. "Following our divestment of Eurofoam in April, [the] announcement is evidence of our strategy to reallocate capital to higher growth and more profitable business opportunities.
"This transaction is a unique opportunity for Recticel to expand its product offering in technical and speciality foam solutions and to further increase our global reach in Asia and North-America. Looking ahead, this acquisition supports our ambition to become a global provider of engineered foam solutions and will create significant value for our customers, employees and all other stakeholders."
