Recticel: Acquisition of FoamPartner from Conzzeta
On 10 November 2020, Recticel announced that it has entered into final agreements with Swiss Conzzeta AG to acquire 100 % of FoamPartner in cash for an enterprise value of CHF 270 million, CHF 20 million of the price being payable in January 2022. Recticel said this represents an 8.6x average 2019A-2020F normalised EBITDA multiple. The transaction is subject to customary conditions precedent including antitrust approvals.
FoamPartner is a global provider of high value-added technical foam solutions in the Mobility, Industrial Specialties and Living & Care markets. There is significant complementarity and synergy upside with Recticel, said the company.
This acquisition is expected to:
- accelerate growth in high value-added activities focused on innovation;
- enable Recticel to strengthen its European and global presence in speciality foam solutions, specifically in the faster growing APAC and North American markets;
- be accretive to group margins before synergies, as of the first full year of consolidation;
- result in EUR 14 million of synergy upside by 2023, with a run-rate of EUR 10 million achieved by end of 2021.
The FoamPartner business will be merged with the Recticel Flexible Foams division to form the new Engineered Foams business segment. Closing of the transaction is expected to be completed in Q1 2021.
Olivier Chapelle, CEO of Recticel, said: “The acquisition of FoamPartner marks an important step in Recticel’s strategic portfolio reorientation. Following our divestment of Eurofoam in April, today’s announcement is evidence of our strategy to reallocate capital to higher growth and more profitable business opportunities. This transaction is a unique opportunity for Recticel to expand its product offering in technical and specialty foam solutions and to further increase our global reach in Asia and North-America. We look forward to welcoming our many new and highly skilled colleagues from FoamPartner. Looking ahead, this acquisition supports our ambition to become a global provider of engineered foam solutions and will create significant value for our customers, employees and all other stakeholders. In conjunction with today’s announcement, Recticel has launched a strategic review to evaluate the future of the Bedding business segment within Recticel, which progressively becomes a group primarily focused on Insulation and Engineered Foams.”
FoamPartner was founded in 1937 and has been a member of Conzzeta AG since 1980. It is a polyurethane foams supplier offering over 200 speciality foams and tailored solutions for industrial, mobility and comfort applications. The group is headquartered in Wolfhausen, Switzerland, and operates at twelve sites located in the USA, China, Germany, Switzerland and France, and has a sales network in 58 countries. FoamPartner employs about 1,100 people and generated net sales of CHF 297 million in 2019.
On 9 December 2019, Conzzeta had announced to focus on the Sheet Metal Processing segment (Bystronic business unit) and to divest all other activities. Earlier in 2020 it sold the Schmid Rhyner business unit. The strategic transformation of the group is ongoing, with the strategy 2025 for Bystronic, as well as with the divestment process for the Outdoor segment (Mammut business unit), to be completed in H1 2021, subject to market conditions.
According to Michael Willome, Conzzeta Group CEO: “As for our previous transactions, the divestment of FoamPartner to Recticel provides a compelling industrial logic and the best possible perspectives for the employees of FoamPartner and their customers. This is a major step towards the new focus of Conzzeta on the Bystronic business unit.”
Michael Riedel, FoamPartner CEO, said: “I am proud of our whole team and our recent progress. The announcement today is good news. As part of Recticel we’ll gain access to additional resources to serve our clients with even more targeted solutions to support their sustainable development and future growth.”