BRUSSELS—Recticel N.V. has sold its half of the Eurofoam joint venture to partner Greiner A.G., and also entered a joint venture for its automotive interiors business.
"Both transactions are essential and transformative steps," CEO Olivier Chapelle said. He added that the moves simplify Recticel's structure.
Recticel is a maker of polyurethane foams used in a range of end products including insulation, bedding and auto interiors.
Greiner first publicly expressed an interest in owning all of Eurofoam when it appeared as a third party in Kingspan P.L.C.'s abortive bid for Recticel in April 2019.
Recticel and Greiner formed a joint venture in 1992 to make flexible foams in Eastern Europe. It was extended in 1997 when both companies added their businesses in Germany and Austria. The JV had sales of around $435.6 million in 2019 and employs 2,100 people.
Greiner CEO Axel Kuhner said the purchase would make his company "able to both further strengthen our global competence in the foam segment and push even harder for future expansion."
Recticel has been trying to sell the automotive interiors business since March 2018.
It now has transferred the business to a new holding company in which it has 49 percent ownership. The remainder belongs to Admetos GmbH, an investment company. The agreement allows for either partner to force the other to sell its stake after March 2024, in a price to be determined on the business' earnings.
The automotive interiors business employs 1,400 people. It has five sites in China, two in the Czech Republic and two in the U.S. Sales were $200 million in 2019.
Overall, Recticel will gain $130.6 million in cash from both deals.