Brussels – Recticel is scaling down its automotive activities, but first it will briefly increase its stake in Proseat.
The company plans to buy the 49% of in its Proseat joint venture owned by Canadian partner Woodbridge. This will give it complete ownership. Subsequently, Recticel will sell 75% of the shares in Proseat to Japan’s Sekisui Plastics.
Both transactions are expected to close in the first quarter. They are subject to customary closing conditions, including regulatory approval, according to the Belgian manufacturer.
The deal is to ‘allow Proseat to build on its leading position as Europe’s largest independent automotive moulded seat foam manufacturer’, Recticel said in a statement.
The agreement contains a call option for Sekisui Plastics to acquire the remaining 25% in Proseat from Recticel from 2019, and a put option for Recticel to sell its remaining 25% in Proseat to Sekisui from 2022, the statement said.
Proseat is based in Morfelden, Germany, and owns eight plants in the UK, France, Germany, Spain, Poland and the Czech Republic. The factories supply PU moulded seat pads and head- and arm-rests. In 2017, Proseat reported sales of EUR 291m.
Recticel runs 98 production facilities and offices in 28 countries. The group’s four product segments comprise flexible foams, automotive, bedding and insulation. Meanwhile, local observers suggest the Belgian company will use funds from disposals to develop its isolation division.