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Everchem Updates
VOLUME XXI
September 14, 2023
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November 10, 2020
Recticel realises a key step in its strategic transformation with the acquisition of FoamPartner
Regulated information, Brussels, 10/11/2020 — 06:55 CET, 10.11.2020
Recticel announces that it has entered into final agreements with Swiss-listed Conzzeta AG (SIX:CON) 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. This represents an 8.6x average 2019A-2020F normalized 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.
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 specialty 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.
Financing is secured by a syndicated acquisition facility which has been arranged and fully underwritten by KBC Bank and to which Belfius Bank and BNP Paribas Fortis confirmed their participation. The acquisition facility has a 3-year tenor with two 1-year extension options.
Closing of the transaction is expected to be completed in the first quarter of 2021.
Olivier Chapelle (CEO) states: “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.”
November 10, 2020
Recticel realises a key step in its strategic transformation with the acquisition of FoamPartner
Regulated information, Brussels, 10/11/2020 — 06:55 CET, 10.11.2020
Recticel announces that it has entered into final agreements with Swiss-listed Conzzeta AG (SIX:CON) 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. This represents an 8.6x average 2019A-2020F normalized 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.
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 specialty 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.
Financing is secured by a syndicated acquisition facility which has been arranged and fully underwritten by KBC Bank and to which Belfius Bank and BNP Paribas Fortis confirmed their participation. The acquisition facility has a 3-year tenor with two 1-year extension options.
Closing of the transaction is expected to be completed in the first quarter of 2021.
Olivier Chapelle (CEO) states: “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.”
November 10, 2020
China Wanhua starts up new coal-based methanol plant November 10/2020 MOSCOW (MRC) — Chinese private-sector firm Wanhua Chemical has recetnly started up a new coal-based methanol plant at Yantai in Shandong province, according to Petrotahlil.
The new plant has a nameplate capacity of 600,000 t/yr and can produce up to 670,000 t/yr of methanol.
Wanhua has mothballed its old, coal-based methanol plant with 200,000 t/yr capacity at the same site.
The new plant may not have much impact on the methanol market as Wanhua plans to maintain low operations at the plant in the initial stage, mainly for its captive consumption by its methylene diphenyl diisocyanate (MDI), methyl methacrylate and methyl tert-butyl ether units totalling 200,000 t/yr of methanol demand.
Weak margins are another concern for Wanhua to produce more methanol.
Wanhua is looking to sell vessel cargoes to east China in the longer term. The company owns China’s single-largest capacity propane dehydrogenation (PDH) plant at Yantai in Shandong province. The PDH unit has 750,000 t/yr of propylene capacity and fully integrated derivatives units. Wanhua is also the world’s largest MDI manufacturer.
The company is also set to start up its 1mn t/yr propane-feed cracker in early November.
As MRC wrote previously, China’s Wanhua Chemical posted a 49.56% decrease in net profits in the first half of the year, as sales and prices both took a hit from the coronavirus pandemic. Slump in oil prices also dampened demand and prices of its products.
Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).Author:Margaret Volkova
November 10, 2020
China Wanhua starts up new coal-based methanol plant November 10/2020 MOSCOW (MRC) — Chinese private-sector firm Wanhua Chemical has recetnly started up a new coal-based methanol plant at Yantai in Shandong province, according to Petrotahlil.
The new plant has a nameplate capacity of 600,000 t/yr and can produce up to 670,000 t/yr of methanol.
Wanhua has mothballed its old, coal-based methanol plant with 200,000 t/yr capacity at the same site.
The new plant may not have much impact on the methanol market as Wanhua plans to maintain low operations at the plant in the initial stage, mainly for its captive consumption by its methylene diphenyl diisocyanate (MDI), methyl methacrylate and methyl tert-butyl ether units totalling 200,000 t/yr of methanol demand.
Weak margins are another concern for Wanhua to produce more methanol.
Wanhua is looking to sell vessel cargoes to east China in the longer term. The company owns China’s single-largest capacity propane dehydrogenation (PDH) plant at Yantai in Shandong province. The PDH unit has 750,000 t/yr of propylene capacity and fully integrated derivatives units. Wanhua is also the world’s largest MDI manufacturer.
The company is also set to start up its 1mn t/yr propane-feed cracker in early November.
As MRC wrote previously, China’s Wanhua Chemical posted a 49.56% decrease in net profits in the first half of the year, as sales and prices both took a hit from the coronavirus pandemic. Slump in oil prices also dampened demand and prices of its products.
Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).Author:Margaret Volkova
November 9, 2020
Everchem Specialty Chemicals is pleased to announce that Roger Hennington has joined our team as Technical Sales Manager. Roger has devoted his entire career to the Polyurethane industry and brings a
vast amount of experience in raw materials such as polyols, isocyanates, silicone surfactants and tertiary amine catalysts. He has held positions in both technical and commercial management and looks forward to working closely with our customers to support their profitable growth.
Everchem Specialty Chemicals is a sales, marketing and technology driven company supplying the North American market with urethane, epoxy and specialty industrial chemicals. Our sourcing abilities, coupled with our technical and market expertise result in real savings of both time and money for our customers.
Roger can be reached at roger@everchem.com.
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