Recticel - A clear-cut insulation story with limited upside though
Last week, Recticel was able to finally close the divestment of its Engineered Foams division to Carpenter for a revised EV of EUR 454m. Whereas this is some EUR 200m less than the previous deal, also the EV dropped by some EUR 50m due to a scope change. Nevertheless, it implies a 25% haircut on the initial price tagAs a result of the lower cash income (EUR 427m), Recticel's cash position post-transaction is less than foreseen, resulting in the decision not to go for an exceptional dividend distribution.From now onwards, Recticel will focus on add-on (or larger) M&A byRecticel is engaged in the production of a variety of polyurethane foams that are used in the furniture, technical, automotive, bedding and insulation industries. The Flexible Foam Business Line covers the manufacture, conversion and marketing of flexible polyurethane foam. The types of flexible foams are classified as Comfort, Technical Foams and Composite Foams. Co. is also engaged in the manufacture of foams used in mattresses and slat bases. In addition, Co. manufactures rigid polyurethane and phenolic foams for thermal insulation. Co.'s automotive activities include: manufacturing moulded seat cushions, window encapsulation and manufacturing interior trim components.
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