Belgian PU foams specialist Recticel (Brussels; www.recticel.com) is restructuring its Proseat (Mörfelden / Germany; www.proseat.de) automotive products joint venture.

In a first step, Recticel has agreed to acquire the 49% stake it does not own in Proseat from Canadian partner Woodbridge Foam (Mississauga, Ontario; www.woodbridgegroup.com). It will subsequently sell a 75% share in Proseat to its new partner, Japan’s Sekisui Plastics (Osaka; www.sekisuiplastics.com), while retaining the remaining 25%. Recticel said the deal will allow Proseat to build on its leading position as Europe’s largest independent automotive moulded seat foam manufacturer and to expand its customer base and product portfolio.

Both transactions, which remain subject to regulatory approvals along with customary closing conditions, are expected to complete during the first quarter of 2019. The agreement also includes options for Sekisui to acquire the remaining 25% stake from Recticel from 2019 and for the Belgian group to sell its share to Sekisui from 2022, at a pre-agreed price formula.

Proseat was established in 1999 to serve tier 1 and OEM car manufacturers with moulded seat pads and head- and armrests made from PU. The JV later developed complementary activities in lightweight expanded PP structural parts. It runs eight manufacturing plants in Europe, including two each in Germany and Poland and one each in the Czech Republic, France, Spain and the UK. Proseat employs around 2,100 people and generated sales of EUR 291m in 2017.