Recticel plans sale of mattress division to finance acquisitions

BRUSSELS, Belgium—Recticel is planning to sell its mattress division and use the funds to finance its acquisition plans in other market segments, according to senior company representatives.

"There certainly will be interested buyers. I'm not going to say who, but I do have some names in mind," Olivier Chapelle, the chief executive of Recticel, told Belgian business daily De Tijd.

Local analysts estimate the potential sale could generate at least $118 million for Recticel. As part of the deal, the manufacturer would sell a number of production facilities across Europe. The company's bedding division operates from 12 main production sites. These are located in Austria, Belgium, Germany, the Netherlands, Poland, Romania, Sweden and Switzerland.

The company's bedding division makes PU mattresses and other products, including bases and box springs. They are marketed under brand names such as Beka, Lattoflex, Geltex, Superba, Swissflex, Sembella and Schlaraffia.

Despite the difficulties imposed by the ongoing pandemic on the company's business, the bedding division generated revenues of about $286 million last year. Recticel says the division's products are mostly sold in Belgium, Germany, the Netherlands, Poland, Austria and Switzerland.

While the European markets generate the majority of its net sales, the company is also active in the U.S. and Asia.