Woodbridge Buys Out Connzzeta
Conzzeta sells stake in US joint venture to Woodbridge
The Swiss Conzzeta Group announced the sale of its 51 % stake in the US joint venture Woodbridge FoamPartner Company, Chattanooga, TN, USA, to The Woodbridge Group and the signing of a supply contract. According to Conzzeta, this move will simplify access to the North American market for the FoamPartner business unit.
The joint venture, founded in 2006 with The Woodbridge Group, manufactures and processes technical polyurethane foams for the US market. The reorganisation of the existing joint venture structure through the sale and the conclusion of a supply agreement will enable FoamPartner to further develop the American market for foam material solutions independently, without contractual restrictions, said Conzzeta.. Already on 21 July 2017, the group announced that it is taking over Otto Bock Kunststoff, including the reorganisation of the joint venture structure in China.
Michael Willome, Conzzeta Group CEO, commented: “With this further step we are paving the way for additional growth in the USA, where we will significantly expand our business volume as a result of the transaction announced on July 21. The restructuring of the two joint ventures will reduce the complexity of FoamPartner’s business in Asia and North America, its most important growth regions.”
The retroactive closing of the transaction per 1 July 2017 will lead to a middle single-digit million one-off gain in the Chemical Specialties segment in the second half of the year, said Conzzeta. In the first half of 2017, the revenue contribution of the proportionally consolidated Woodbridge FoamPartner Company was CHF 5.1 million (~ EUR 4.5 million) at average profitability for FoamPartner.
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