Brussels, Belgium — Recticel could have a short-list of preferred bidders for its automotive division and could sell it by the end of this year, according to financial analysts.
The analysts suggest it will use the funds it raises to develop its isolation division
Meanwhile, they suggest Recticel is planning acquisitions, according to local analysts.
‘Given that the disinvestment in the automotive [sector] is advancing in line with [the company’s] plans, this seems to indicate that Recticel now has a short list of buyers and that an official announcement could be expected by the end of this year,’ Nathalie Debruyne, an equity analyst at Degroof Petercam, told local business daily L’Echo.
Analysts estimate that the transaction is worth up to EUR 150m. This is according to figures obtained from securities and brokerage firm KBC Securities. Recticel could use the funds to develop its insulation production activities.
The Belgian group runs 98 production facilities and offices. In total 8411 people work at Recticel and its joint ventures. The company has operations in 28 countries.
The group’s four product segments include flexible foams, automotive, bedding and insulation. The European markets generate as much as 93% of the company’s net sales, but Recticel says it is also active in the US and Asia.