Richmond, Virginia – Recticel represents a step-change in Carpenter's acquisition strategy, according to Brad Beauchamp, the company’s CEO.
Recticel: Carpenter promises investment and efficiencies
Speaking on the Chemical Show podcast in late January, Beauchamp said: 'We would typically look at fairly small things, one or two site locations.' But, he said, the opportunity to buy Recticel's engineered foam business fitted well with his company's strategy to expand overseas and into new foam areas.
Before Recticel was approached by Greiner, it purchased FoamPartner. This is a company that Beachamp said Carpenter had looked at during its spin off from Conzetta. Carpenter's familiarity with FoamPartner spurred it to talk to Recticel.
'The more we looked at it, the more we liked it,’ Beauchamp told the podcast’s host, Victoria Meyer. ‘It's easy to fall in love with something, but the reality is it is not a perfect geographic fit. It helps us geographically, and it does do the market diversification that we want.'
Beauchamp believes that Recticel and Carpenter have a similar world view and the acquisition will increase Carpenter by a third, or by EUR656m. 'Go big or go home,' he said. 'We’re jumping from 4500 to 7000 employees.'
Greiner's unsolicited bid speeded things up for Carpenter 'It compressed the timeframe,' Beauchamp said.
Carpenter was looking to beef up its European management, and Recticel has got good people, he added.
About 80% of Recticel’s sales are in Europe, 10% in the US and 10% in is in Asia. ‘There is very little overlap between Carpenter and Recticel,’ Beauchamp said.
'When you look at their top 10 customers in a given region, and our top 10, there isn't going to be much overlap,’ he said. ‘We can invest in the Recticel plants and get them to [be] more efficient than they are. We feel that gives us a lot of tools in our toolbox.'