Page 49 - Plastics News April 2020
P. 49
CMI acquires Elgin to broaden its market Recticel divests its Automotive Interiors
profile division and 50% stake in the Eurofoam
Flexible Foams s
MI, which is backed
Cby Capital Partners,
Recticel N.V. has sold
has acquired Elgin,
I l l i n o i s - b a s e d its half of the Eurofoam
Engineered Plastic j o i n t v e n t u r e t o
Systems, a maker of a partner Greiner A.G.,
h i g h - d e n s i t y and also entered a
polyethylene boards joint venture for its
used in a variety of automotive interiors
applications. Georgia- b u s i n e s s . " B o t h
b a se d p l a s ti c a n d t r a n s a c t i o n s a r e
aluminum marine wall
e s s e n t i a l a n d
and dock maker CMI
transformative steps,"
Limited Inc. has purchased synthetic lumber maker
CEO Olivier Chapelle
Engineered Plastic Systems of Illinois in a bid to
said. He added that the moves simplify Recticel's
broaden its market profile. CMI, said the EPS
structure. Recticel is a maker of polyurethane foams
acquisition would become its third operating division.
However the terms were not disclosed but CMI used in a range of end products including insulation,
President and CEO Duane Bryant said in a statement bedding and auto interiors. Greiner first publicly
the acquisition lets it expand into new markets as well expressed an interest in owning all of Eurofoam when
as give it more capabilities in its core marine products it appeared as a third party in Kingspan P.L.C.'s
business. "Their mono-extruded HDPE decking boards, abortive bid for Recticel in April 2019. Recticel and
deck railing and fence railing add to our extrusion Greiner formed a joint venture in 1992 to make
expertise, regional production footprint and ability to
flexible foams in Eastern Europe. It was extended in
serve new and existing customers with a broader array
1997 when both companies added their businesses in
of products," he said. "Additionally, EPS' products are Germany and Austria. The JV had sales of around
designed to perform exceedingly well in the marine
$435.6 million in 2019 and employs 2,100 people.
markets we serve." It has a unit specializing in making
vinyl, fiber-reinforced plastic and aluminum sheet Greiner CEO Axel Kuhner said the purchase would
piling for a variety of applications, and a unit making make his company "able to both further strengthen our
aluminum bridge, dock and gangway applications for global competence in the foam segment and push even
marinas and boat docks. Its vinyl, FRP and aluminum harder for future expansion."Recticel has been trying
wall business makes products for retaining walls, flood to sell the automotive interiors business since March
protection and water control as well as chemical 2018. It now has transferred the business to a new
containment and groundwater applications. The
holding company in which it has 49 percent ownership.
acquisition also gives it some geographic expansion,
The remainder belongs to Admetos GmbH, an
adding the Illinois location to CMI facilities in Georgia,
investment company. The agreement allows for either
Florida and Washington state. It's the second
partner to force the other to sell its stake after March
acquisition for CMI since it was acquired in 2017 by
Norwalk, Conn.-based private investment firm Capital 2024, in a price to be determined on the business'
Partners. It bought an aluminum ramp and gangway earnings. The automotive interiors business employs
maker in 2018. EPS makes plastic lumber for decking, 1,400 people. It has five sites in China, two in the
railing and recreational facilities as well as outdoor Czech Republic and two in the U.S. Sales were $200
furniture, with material that has at least 50 percent million in 2019.Overall, Recticel will gain $130.6
recycled content from things like milk jugs and million in cash from both deals.
detergent bottles.
APRIL 2020 46 Plastics News
