European polyurethane foam manufacturer Recticel SA is reinforcing its position in Spain with an agreement to buy local foam supplier Grupo Icoa of Bilbao.
The takeover of Icoa, which recorded annual sales in 2005 of 40 million euros ($51 million), will take Brussels-based Recticel's overall share of the fragmented Spanish foam market above 30 percent and will become the Iberian Peninsula's biggest single supplier, Recticel said.
In Spain, Icoa employs about 200 and runs three foaming plants in Madrid, Valencia and Vitoria; and three converting sites in Bilbao, Valencia and Barcelona.
The Icoa group has three units, all in Spain. Its core business in Villareal de Alava makes flexible PU foams for the automotive, insulation, furniture, shoe and packaging sectors. Icotec 2000 SA in Arrigorriaga, uses foam products in the construction of indoor and outdoor children's playgrounds. Lemona-based Ingeniería del Poliuretano Flexible builds and repairs equipment used in the flexible PU industry.
Value of the deal, which is pending approval by Spain's competition authorities, was not disclosed.