October 19, 2021

Dow Plans

Dow unveils zero-carbon growth initiatives for $3B EBITDA boost

Oct. 06, 2021 7:10 AM ETDow Inc. (DOW)By: Carl Surran, SA News Editor

• At its Investor Day, Dow Inc. (NYSE:DOW) outlines plans to deliver more than $3B in additional EBITDA by 2030, while keeping capital spending at or below depreciation and amortization, as well as driving the company toward zero-carbon emissions across its global asset base.
• Dow says it expects near-term capital and operating growth investments will increase EBITDA by $2B, and a new net-zero carbon emissions ethylene and derivatives complex will deliver $1B in EBITDA.
• Dow also unveils plans to build the world’s first net-zero carbon emissions ethylene facility and convert the assets at its Fort Saskatchewan site in Alberta to create the first net-zero carbon emissions complex for scope 1 and 2 carbon dioxide emissions.
• The company says the investments will decarbonize ~20% of its global ethylene capacity while growing its polyethylene supply by 15%.
• Dow also signs eight new renewable energy agreements in Europe and America.
• Dow’s Investor Day presentation

https://seekingalpha.com/news/3749305-dow-unveils-zero-carbon-growth-initiatives-for-3b-ebitda-boost

October 19, 2021

Dow Plans

Dow unveils zero-carbon growth initiatives for $3B EBITDA boost

Oct. 06, 2021 7:10 AM ETDow Inc. (DOW)By: Carl Surran, SA News Editor

• At its Investor Day, Dow Inc. (NYSE:DOW) outlines plans to deliver more than $3B in additional EBITDA by 2030, while keeping capital spending at or below depreciation and amortization, as well as driving the company toward zero-carbon emissions across its global asset base.
• Dow says it expects near-term capital and operating growth investments will increase EBITDA by $2B, and a new net-zero carbon emissions ethylene and derivatives complex will deliver $1B in EBITDA.
• Dow also unveils plans to build the world’s first net-zero carbon emissions ethylene facility and convert the assets at its Fort Saskatchewan site in Alberta to create the first net-zero carbon emissions complex for scope 1 and 2 carbon dioxide emissions.
• The company says the investments will decarbonize ~20% of its global ethylene capacity while growing its polyethylene supply by 15%.
• Dow also signs eight new renewable energy agreements in Europe and America.
• Dow’s Investor Day presentation

https://seekingalpha.com/news/3749305-dow-unveils-zero-carbon-growth-initiatives-for-3b-ebitda-boost

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 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.