Recticel divestment to Carpenter enters final phase

Belgian foam producer Recticel has reported a growth in fourth quarter and full year sales while the divestment of its Engineered Foams division to Carpenter nears completion.

According to its latest trading update, Q4 sales rose 19.4% to €133.7m, while full year sales increased 25% to €561.5m. Adjusted EBITDA rose 28.4% from €48.4m in 2021 to €62.2m in 2022.

Recticel added carved out results from its discontinued operations, which include its Engineered Foams activities – currently in the process of being sold to the Carpenter Co. Sales generated €32.8m in the year, up from €21.3m.

The result of the first three months of 2022 of the Bedding activities saw revenues of €1.3m, while the net capital gain on the disposal of the Bedding activities sold to Aquinos Group resulted at €17.9m.

Commenting on its divestment to Carpenter, Recticel added: “On 26 January 2023, the UK Competition and Markets Authority (the “CMA”) accepted the Final Undertakings from the Parties, whereby Recticel Ltd., comprising mainly comfort foams activities and located in Alfreton/Midlands (UK) would be sold separately to a suitable upfront purchaser, before the main transaction can be closed. The divestment process of this UK activity is entering its final phase with binding offers expected shortly. Recticel and Carpenter continue to work together towards the closing of the Engineered Foams transaction, which is still expected to take place at the end of the first quarter of 2023.”

Olivier Chapelle, CEO of Recticel, said: “The European construction market has become increasingly challenging as the year 2022 unfolded, with growing economic uncertainties and historically high inflation and rising interest rates weighing progressively more and more on construction activities. In that environment, I am proud of all our employees and want to thank them. In 2022, their focus and contributions have allowed to deliver, when compared to 2021, slightly higher volumes in Insulation Boards and flat volumes in Insulated Panels. Reactivity on pricing and margin management have in turn contributed to deliver solid results.

“The divestment of Engineered Foams is expected to close at the end of the first quarter of 2023. It follows the decision on 26 January 2023 by the Competition and Markets Authority in the UK, to approve the Final Undertakings, which execution is now entering its final phase.

“With the acquisition of Trimo on 1 May 2022, now fully integrated, we have created a broader basis for further internal and external growth.

“With regard to ESG and sustainable development, after having announced our commitment to the SBTi, we can report a 11.2% reduction in our Scope 1 & 2 carbon emissions in 2022 versus reference year 2021.”

Looking ahead, Recticel said “margin management, growth initiatives and further progress on ESG are the priorities in 2023”.

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