Company News

October 18, 2021

Recticel Clarification

Clarification with regard to Recticel’s strategic intent

Occasional information, Brussels, 15/10/2021 — 18:07 CET, 15.10.2021

Recticel clarifies certain key elements with regard to its recent announcement on the sale of its Engineered Foams division:

  • As communicated in its press release of 11 October 2021, Recticel has received a binding offer from Carpenter to acquire Recticel’s Engineered Foams business which is only subject to shareholder approval and to customary conditions including regulatory approval and confirmatory due diligence. Carpenter’s binding offer is not subject to any financing condition. The outcome of the confirmatory due diligence will be known before the general meeting that will decide on the transaction and further details of this deal will be communicated upon publication of the convocation for this general assembly. 
  • The cash consideration of Carpenter’s offer for the Engineered Foams business is based on an enterprise value1 of EUR 656 million, which represents EUR 11.65 per Recticel share on a fully diluted basis. The offer is made on a cash and debt free basis. 
  • Greiner states in its press release that its public offer on Recticel values the company at an enterprise value of EUR 1,173 million or EUR 20.8 per Recticel share. This is not in line with Greiner’s prospectus, which implies an enterprise value of EUR 1,058 million  or EUR 18.8 per share. 
  • The implied value of the Insulation business in Greiner’s offer amounts to only EUR 411 million, which is significantly below the average broker consensus valuation of EUR 708 million. It substantially undervalues Recticel’s Insulation business; the difference between both amounts to EUR 297 million, equivalent to EUR 5.3 per share on a fully diluted basis.
  • As communicated in the 11 October 2021 Recticel press release, the Board of Directors of Recticel will review at a later stage options for the use of proceeds from the sale of the Engineered Foams business, including a potential partial distribution to shareholders in a tax effective way (capital reduction, repurchase of own shares). 
  • Recticel expects to publish in due course its Response Memorandum which will describe the view of the Board of Directors of Recticel on the Prospectus of Greiner, including on the Offer Price   
  • The divestment process of the Bedding business is on track and in line with the previously communicated schedule, i.e. a signing in 4Q2021 and a closing in 1Q2022. 

https://www.recticel.com/clarification-regard-recticels-strategic-intent.html

October 15, 2021

New Foam Line in SC

HFI subsidiary begins pouring foam in the U.S.

Home Textiles Today Staff // News & Commentary • October 13, 2021

David Li, chairman and CEO of both Home Furnishing International and Palmetto Pedic

Palmetto Pedic LLC, the two-year-old foam manufacturer owned by fabric and home fashions manufacturer Home Furnishing International, is unveiling a new line of conventional foam and memory foam for use in mattresses, foundations, upholstery and accessories.

“The combination of global supply chain difficulties and the imposition of anti-dumping duties means that there is a huge demand for foam and foam bedding products here in the U.S.,” said David Li, chairman and CEO of both Home Furnishing International and Palmetto Pedic. “We are offering an expansive selection of made-in-America products that will give major U.S. bedding suppliers innovative and sustainable choices and at the same time, alleviate many of the supply chain difficulties that have plagued the bedding market in recent months.”

Palmetto Pedic poured its first U.S.-made foam at its Gaffney, S.C. plant on Sept.17. The company currently has the capacity to produce 3,000 mattresses per day, and the recent purchase of a 350,000-square-foot plant in Blacksburg, S.C. will increase that capacity to 8,000 mattresses per day. The new Blacksburg plant is located just down the Interstate-85 highway corridor from the Gaffney plant, which will enable both plants to easily and efficiently collaborate on production runs.

Palmetto Pedic was formed in March 2019 as a joint venture between a group of private investors and Home Furnishing International, a privately held vertical fabric and home fashions supplier with annual sales estimated in excess of $200 million.

The buying power of both Home Furnishings International and its private investors also benefits Palmetto Pedic when it comes to negotiating for chemicals and other raw materials, according to Li.

“It is no secret that there have been major shortages of the chemicals used to make foam, which has led to delays and shortages in the mattress manufacturing sector,” Li states. “We are able to leverage the strong relationships that Home Furnishings International and our investors have with raw materials suppliers in order to ensure that we have a steady supply of the chemicals and other resources that we need for Palmetto Pedic.”

Palmetto Pedic is targeting the line to major U.S. bedding producers and upholstered furniture manufacturers, and will be meeting with customers in the showroom of its sister company, American Decorative Fabrics, located at 312 S. Hamilton St., Second Floor, Suite 201-D, in High Point.

October 15, 2021

New Foam Line in SC

HFI subsidiary begins pouring foam in the U.S.

Home Textiles Today Staff // News & Commentary • October 13, 2021

David Li, chairman and CEO of both Home Furnishing International and Palmetto Pedic

Palmetto Pedic LLC, the two-year-old foam manufacturer owned by fabric and home fashions manufacturer Home Furnishing International, is unveiling a new line of conventional foam and memory foam for use in mattresses, foundations, upholstery and accessories.

“The combination of global supply chain difficulties and the imposition of anti-dumping duties means that there is a huge demand for foam and foam bedding products here in the U.S.,” said David Li, chairman and CEO of both Home Furnishing International and Palmetto Pedic. “We are offering an expansive selection of made-in-America products that will give major U.S. bedding suppliers innovative and sustainable choices and at the same time, alleviate many of the supply chain difficulties that have plagued the bedding market in recent months.”

Palmetto Pedic poured its first U.S.-made foam at its Gaffney, S.C. plant on Sept.17. The company currently has the capacity to produce 3,000 mattresses per day, and the recent purchase of a 350,000-square-foot plant in Blacksburg, S.C. will increase that capacity to 8,000 mattresses per day. The new Blacksburg plant is located just down the Interstate-85 highway corridor from the Gaffney plant, which will enable both plants to easily and efficiently collaborate on production runs.

Palmetto Pedic was formed in March 2019 as a joint venture between a group of private investors and Home Furnishing International, a privately held vertical fabric and home fashions supplier with annual sales estimated in excess of $200 million.

The buying power of both Home Furnishings International and its private investors also benefits Palmetto Pedic when it comes to negotiating for chemicals and other raw materials, according to Li.

“It is no secret that there have been major shortages of the chemicals used to make foam, which has led to delays and shortages in the mattress manufacturing sector,” Li states. “We are able to leverage the strong relationships that Home Furnishings International and our investors have with raw materials suppliers in order to ensure that we have a steady supply of the chemicals and other resources that we need for Palmetto Pedic.”

Palmetto Pedic is targeting the line to major U.S. bedding producers and upholstered furniture manufacturers, and will be meeting with customers in the showroom of its sister company, American Decorative Fabrics, located at 312 S. Hamilton St., Second Floor, Suite 201-D, in High Point.

October 12, 2021

Arsenal Makes Another Acquisition

Arsenal’s Applied Adhesives Acquires American Chemical
MINNETONKA, Minn., October 12, 2021 — APPLIED Adhesives, a premier custom adhesive solutions provider in North America, today announced the acquisition of American Chemical, a regional supplier of adhesives and sealants located in Minneapolis, MN. APPLIED’s acquisition of American Chemical serves to strengthen its commitment of providing industry leading technical expertise and exceptional service to its customers.
“American Chemical has consistently delivered innovative solutions and exceptional value to its customers, which aligns with our culture of relentless customer focus,” said John Feriancek, president and chief executive officer of APPLIED Adhesives. “We look forward to welcoming American Chemical’s customers to the APPLIED family and providing them outstanding service, support, and value.” 

For over 30 years, American Chemical has supported the needs of its customers through new product development and in-house lab services for unique applications. “I am very proud of American Chemical’s legacy of innovation and customer support,” said Dennis Werneke, former owner of American Chemical. “I’m excited that our customers will now have the opportunity to partner with APPLIED and their talented, customer-focused team of professionals. Our customers are in good hands.”

American Chemical is APPLIED Adhesives’ third acquisition in 2021 and its eighth in the last four years.

Financing & Advisors Krahn Capital Group, LLC advised American Chemical in the transaction.

About APPLIED Adhesives APPLIED Adhesives, founded in 1971, is a premier custom adhesive solutions provider for the packaging, paper converting, graphic arts, bottle labeling, product assembly, and automotive industries. The company is a value-added distributor of hot melt, water-based, and reactive adhesives as well as dispensing equipment. APPLIED Adhesives serves as a critical supply chain partner to leading adhesive manufacturers and formulators by offering reach and high service levels to an expansive customer base. For more information, please visit appliedadhesives.com.

About Krahn Capital Group, LLC Krahn Capital Group is a boutique investment banking firm specializing in mergers and acquisitions and capital advisory services for privately held businesses in the lower middle market. For more information, please visit www.krahncapitalgroup.com.

About Arsenal Capital Partners Arsenal is a leading private equity firm that specializes in investments in middle-market industrial growth and healthcare companies. Since its inception in 2000, Arsenal has raised institutional equity investment funds of $5.3 billion, has completed more than 200 platform and add-on investments, and achieved more than 30 realizations. Arsenal invests in industry sectors in which the firm has significant prior knowledge and experience. The firm works with management teams to build strategically important companies with leading market positions, high growth, and high value-add. Visit www.arsenalcapital.com.

October 12, 2021

Arsenal Makes Another Acquisition

Arsenal’s Applied Adhesives Acquires American Chemical
MINNETONKA, Minn., October 12, 2021 — APPLIED Adhesives, a premier custom adhesive solutions provider in North America, today announced the acquisition of American Chemical, a regional supplier of adhesives and sealants located in Minneapolis, MN. APPLIED’s acquisition of American Chemical serves to strengthen its commitment of providing industry leading technical expertise and exceptional service to its customers.
“American Chemical has consistently delivered innovative solutions and exceptional value to its customers, which aligns with our culture of relentless customer focus,” said John Feriancek, president and chief executive officer of APPLIED Adhesives. “We look forward to welcoming American Chemical’s customers to the APPLIED family and providing them outstanding service, support, and value.” 

For over 30 years, American Chemical has supported the needs of its customers through new product development and in-house lab services for unique applications. “I am very proud of American Chemical’s legacy of innovation and customer support,” said Dennis Werneke, former owner of American Chemical. “I’m excited that our customers will now have the opportunity to partner with APPLIED and their talented, customer-focused team of professionals. Our customers are in good hands.”

American Chemical is APPLIED Adhesives’ third acquisition in 2021 and its eighth in the last four years.

Financing & Advisors Krahn Capital Group, LLC advised American Chemical in the transaction.

About APPLIED Adhesives APPLIED Adhesives, founded in 1971, is a premier custom adhesive solutions provider for the packaging, paper converting, graphic arts, bottle labeling, product assembly, and automotive industries. The company is a value-added distributor of hot melt, water-based, and reactive adhesives as well as dispensing equipment. APPLIED Adhesives serves as a critical supply chain partner to leading adhesive manufacturers and formulators by offering reach and high service levels to an expansive customer base. For more information, please visit appliedadhesives.com.

About Krahn Capital Group, LLC Krahn Capital Group is a boutique investment banking firm specializing in mergers and acquisitions and capital advisory services for privately held businesses in the lower middle market. For more information, please visit www.krahncapitalgroup.com.

About Arsenal Capital Partners Arsenal is a leading private equity firm that specializes in investments in middle-market industrial growth and healthcare companies. Since its inception in 2000, Arsenal has raised institutional equity investment funds of $5.3 billion, has completed more than 200 platform and add-on investments, and achieved more than 30 realizations. Arsenal invests in industry sectors in which the firm has significant prior knowledge and experience. The firm works with management teams to build strategically important companies with leading market positions, high growth, and high value-add. Visit www.arsenalcapital.com.