RECTICEL: FoamPartner acquisition heralds new two-leg strategy
The acquisition of FoamPartner for € 250m roughly doubles EBITDA of Recticel’s Flexible Foams business and undisputedly shows that Recticel has chosen for a two-leg strategy, with both Insulation and Flexible Foams considered core. While we believe that the alternative track of becoming a pure play Insulation company would have been the fastest route to maximizing shareholder value creation, we see also some benefits in the current route. FoamPartner is acquired at a fairly attractive price and Recticel now seems on track to become a healthy FCF generator, with the stock trading at a FCF yield of 9.2% on 2022 forecasts and 10%+ on 2023 forecasts, upon inclusion of the targeted FoamPartner synergies. We reiterate our Accumulate rating and € 10 TP.Recticel 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.
We are a financial services provider for several types of professional clients, each with distinct needs.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.