Brussels, Belgium – Recticel’s divestment of its engineered foams business, first announced in December 2021 in the light of a hostile bid from Greiner, has finally completed. This leaves Recticel as a pure-play insulation business, while Carpenter claims it will become the world’s largest vertically integrated manufacturer of PU foams and specialty polymer products.
The value of the deal has been revised down to €454m, from €656m. This results from market events and changes to the operations included in the deal.
Delays were caused by anti-trust issues raised by the competition authorities. In particular, concerns raised by the UK Competition & Markets Authority led to the sale of two UK comfort foam facilities to Gil Investments in April.
Other changes from the original scope of the deal included Recticel’s retention of the Soundcoat Company in the US, which makes industrial thermal and acoustic insulation, and had sales of €26m in 2022. It also retained its third-share in Italy’s Orsa Foam, which provides flexible foam products in southern Europe, with 2022 sales of €107m.
Recticel will integrate Soundcoat into its insulation business. It plans to divest its share of Orsa.
“I am happy that we could finally complete the divestment of our engineered foams activities to Carpenter, as it will allow us to focus on expanding our insulation activities,’ said Recticel CEO Olivier Chapelle. “Recticel is now ready to move forward as a pure player in insulation, focused, cash positive, and driven by ambitious growth, innovation and sustainability targets.”
Brad Beauchamp, Carpenter’s CEO, said that his company is excited to have completed the transaction. “It represents a unique opportunity for Carpenter to add a great set of locations and business units together with people dedicated to providing superior products and services,” he said. “This transaction will allow Carpenter to accelerate its growth throughout the various end markets for flexible polyurethane foam.”
