Recticel is to purchase FoamPartner from its Swiss owner Conzzeta, in a deal set to close in the first quarter of 2021. Conzzeta put FoamPartner up for sale in December 2019.
No explicit price for the deal was given, but Recticel said tat the business has an enterprise value of EUR270m. EUR20m will be payable in January 2021. At EUR270m, the value is about 8.6x the business EBITDA in the latest financial year.
Recticel is funding the purchase with a three-year loan. This can be extended by up to two more years.
Olivier Chapelle, Recticel’s CEO, said: ‘[The deal] marks an important step in our strategic portfolio reorientation. This is a unique opportunity to expand its product offering in technical and specialty foams, and it increases our reach in Asia and North America.’
He expects the acquisition to start contributing to margins during the first year of its ownership. There should also be savings of around EUR14m in the first year, and EUR10m each year afterwards.
Michael Riedel, FoamPartner’s CEO, said: ‘As part of Recticel, we’ll gain access to additional resources. I am proud of our whole team and our recent progress.
The business will fit with Recticel’s existing flexible foams division. It will be part of a new engineered foam division.With the acquisition, Recticel gained three sites in North America.