Belgian foam producer Recticel has signed a binding agreement to sell its Engineered Foams activities to US-based Carpenter Co, subject to customary closing conditions, including anti-trust clearance.
Carpenter and Recticel received such clearance from the UK Competition & Markets Authority (CMA) on 12th April 2023 (see related), and subsequently signed the divestment of the two UK Comfort Foams facilities (remedies meeting CMA requirements) to GIL Investments Ltd on 17th April 2023. All conditions being met, Carpenter Co and Recticel could progress to closing the main transaction.
Olivier Chapelle, CEO of Recticel, says: “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."
Brad Beauchamp, CEO of Carpenter Co, adds: “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 PU foam."
The value of the deal was revised to €454.1m, reflecting the reduced perimeter and the Ukraine war's impact on trading in Europe in the last 15 months, while 33% participation was retained in Italy's Orsa Foam, and 100% of The Soundcoat Company Inc (US).
