Brussels - Major European foam group Recticel is to spend Euro 13.6 million ($17.6 million) to buy three manufacturers of flexible foam from Norwegian company Brekke Industrier AS, which was one of the largest foam manufacturers in Northern Europe.
Recticel's 26 Nov announcement described the purchase price as 'enterprise value,' for the three businesses: Westnofa Industrier AS in Norway, Superlon Oy in Finland and certain assets of AS Univa in Estonia. In 2007, the consolidated turnover of these companies came to Euro 38.4 million and they employed 230 people.
These three Brekke subsidiaries produce and convert polyurethane foam in Andalsnes and Oysand in Norway, Rauma in Finland and Tallinn in Estonia. They mainly supply the upholstery/furniture, bedding and transport industries and make polyurethane mattresses.
Another Brekke foam making unit UAB Superlon Baltic of Lithuania, was not included in the deal. Brekke is retaining its its 50-percent share in Superlon Baltic, according to an email from Kjell Eriksen, managing director of Brekke Industrier. Eriksen did not comment on Brekke's plans for the foam business or on why it had sold the three units.
With this takeover and the acquisition of the Finnish company Espe in 2007, Recticel said it "becomes the largest foam manufacturer in Northern Europe." These additions will push Recticel's yearly turnover in flexible foams in Northern Europe to Euro 105 million, a rise of 176 percent, compared to Euro 38 million in sales before it bought Espe.
Recticel said the agreement has already been approved by the antitrust authorities, and from 1 Jan 2009 the results of the acquired companies will be incorporated into Recticel's figures. The transaction is expected to close 10 Dec 2008.
Recticel's total global turnover in 2007 in flexible foams was Euro 665 million, out of total sales including its insulation, automotive and bedding business lines, of Euro 1600 million. The
Belgian group describes itself as having "a strong European dimension," but with operations in the rest of the world: it has some 130 establishments in 27 countries.