Zurich, Switzerland – Conzzeta, Foam Partner’s parent, has sold its 51% stake in its North American joint venture with Woodbridge FoamPartner to Woodbridge.
No price was disclosed for the transaction.
Conzzeta said that it had signed a supply agreement with Woodbridge which will allow Foam Partner to ‘further develop the American market for foam independently, without contractual restrictions.’
Michael Willome, Conzzeta group CEO, said ‘We are paving the way for additional growth in the USA where we will significantly expand our business volumes.’ This will be done through the recent Otto Bock acquisition which doubled the size of FoamPartner.
Willome added: ‘The restructuring of the two joint ventures will reduce the complexity of FoamPartners’ business in Asia and North America, its most important growth regions.’
The Woodbridge deal closed on 1 July 2017, but was announced in mid August, and will lead to a ‘middle single-digit million one-off gain in the Chemicals Specialties segment. In the first half of 2017, the revenue contribution of the Woodbridge FoamPartner company was CHF 5.m ($5.3 m) at average profitability for FoamPartner, Conzzeta added.