Kremsmunster, Austria – Greiner is a diversified company, which finds the returns from flexible foam attractive. Its purchase of 27% of Recticel indicates that it also believes there are opportunities in rigid foam.
Recticel and Greiner worked together for 30 years through the Eurofoam joint venture. That was dissolved in June last year, with Recticel selling its stake. Greiner's most recent annual report, published on 13 May, said that its Noveon business, which includes Recticel's former share of the JV grew sales by 20% in 2020.
Greiner’s business interests range from diagnostics and biotechnology to plastic extrusion machinery. The family-owned company wants to broaden its portfolio, and rigid foam has great potential.
In a statement, the Austrian company said that Recticel's rigid foam busines offers scope for 'further consolidation potential in the insulation foam market, an attractive business that Greiner will gain access to for the first time through the transaction'.
If it is successful, and the bid is not yet formal, Greiner has promised to keep the Recticel listing in Belgium. It also promises to strengthen both Recticel and Greiner’s flexible foam offering to customers and advance foam innovation through 'strong and scalable R&D capabilities'.
Axel Kuhner, CEO of Greiner, added: 'Now is the right time to bring together our two companies. Recticel has just completed the acquisition of FoamPartner, and has announced its updated strategy, which we can help accelerate.’
The Austrian company has an agreement with BNP Paribas to fund the offer.