Edition:
United Kingdom

Recticel Divests From Its Proseat Joint Venture In Two Steps


Wednesday, 19 Dec 2018 

Dec 19 (Reuters) - RECTICEL NV ::DIVESTS FROM ITS PROSEAT JOINT VENTURE IN TWO STEPS.ENTERS INTO FINAL AGREEMENTS TO ACQUIRE THE REMAINING 49% IN ITS PROSEAT JOINT VENTURE FROM ITS CANADIAN PARTNER WOODBRIDGE FOAM CORPORATION.AGREEMENT BETWEEN RECTICEL AND SEKISUI CONTAINS A CALL OPTION FOR SEKISUI PLASTICS CO., LTD. TO ACQUIRE THE REMAINING 25% IN PROSEAT FROM RECTICEL AS FROM 2019.TRANSACTION WILL HAVE NO MATERIAL EFFECT ON RECTICEL’S RESULTS.JOINT VENTURE BETWEEN SEKISUI (75%) AND RECTICEL (25%).ENTERED INTO FINAL AGREEMENTS WHEREBY IT WILL SELL 75% IN PROSEAT TO JAPANESE PUBLIC COMPANY SEKISUI PLASTICS.THE PROSEAT JOINT VENTURE HAS BEEN VALUED AT AN ENTERPRISE VALUE OF 8.4X THE AVERAGE (2016-2018F) EBITDA.BOTH TRANSACTIONS (I.E. RECTICEL/WOODBRIDGE AND RECTICEL/SEKISUI PLASTICS CO. LTD) ARE EXPECTED TO BE CLOSED IN THE COURSE OF Q1 2019. 

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