Belgian foam producer Recticel has announced the completion of its divestment of its Engineered Foams division to US foam producer Carpenter.
Recticel signed a binding agreement to sell its Engineered Foams activities to US-based Carpenter Co., subject to customary closing conditions, including anti-trust clearance. This has been revised to the value of €454.1m, including cash proceeds of €427m.
“The transaction represents a 7.5 x multiple on the average 2021 and 2022 Adjusted EBITDA pertaining to the divested perimeter,” Recticel said.
Carpenter and Recticel received clearance from the UK Competition & Markets Authority (CMA) on 12 April 2023, and have subsequently signed the divestment of the two UK comfort foam facilities under Recitcel Ltd to investment firm GIL Investments Ltd on 17 April 2023.
Furthermore, Recticel has retained 33% share in Italian Orsa Foam S.p.A. but intends to fully divest its minority share in the future.
Olivier Chapelle, CEO of Recticel, commented: “I am happy that we could finally complete the divestment of our Engineered Foams activities to Carpenter Co., as it will allow us to focus on expanding our Insulation activities. The revised perimeter of the transaction is essentially the consequence of regulatory and strategic reasons.
“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. As our transformation journey comes to an end, I want to thank everyone who has worked hard on the completion of this five year transformation process, which started in late 2018 with the divestment of our share in the Proseat joint venture. My gratitude extends to all our stakeholders for their continuous trust and support as we executed our plans.
“To finish, I wholeheartedly thank all our Engineered Foams colleagues for their cooperation and commitment to Recticel during these last 24 months and last but certainly not least, I wish them lots of success and an exciting continued journey as they transfer to Carpenter Co.”
Brad Beauchamp, CEO of Carpenter Co., added: “We are excited to have completed this transaction, as 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.
“This transaction will allow Carpenter to accelerate its growth throughout the various end markets for flexible polyurethane foam. I want to thank all of those involved in the transaction who have demonstrated their dedication throughout the last 24 months to seeing this through to a successful completion and we look forward to a bright future for our combined operations and for Recticel as it embarks on its insulation strategy.”
