Brussels – Recticel completed the sale of 75% of its Proseat Automotive Division to Sekisui Plastics on 19 February 2018.
Sekisui buys 75% of Proseat from Recticel
The Belgium-based foamer announced the complicated deal in December 2019. Initially, Recticel had to buy Woodbridge's 49% share of the Proseat joint venture before it could sell a 75% stake to Sekisui.
Recticel generated EUR 21m in proceeds from the transactions and this values Proseat at around 8.5x average EBITDA between 2016 and 2018.
The agreement between Sekisui and Recticel contains two key provisions. The first is a call agreement. This enables Sekisui force Recticel to sell the its stake from 1 January 2019.
There is also a put option. This allows Recticel to force Sekisui to buy its share before 1 January 2022. Both companies have agreed a formula to work out the price of either option.
Olivier Chapelle, Recticel's CEO, said the transaction would help the company to 'further concentrate on the development of our core activities'.
He said the company would focus more on its insulation business.