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Kingspan said to have sought mega-merger with US firm

Insulation giant sought deal with Arizona-based Carlisle

Kingspan, led by CEO Gene Murtagh, is said to have sought to merge with a US firm.

Sun Sep 10 2023 - 22:46

Kingspan made an informal approach to combine with Carlisle, which rebuffed the move to build a global building materials giant, people familiar with the matter said.

The Irish insulation and construction products company proposed a deal in recent months, according to the people, who asked not to be identified because deliberations are private. Carlisle, which has a market value of $12.5 billion (€11.6 billion), rejected the pitch but signalled it would be open to at least reviewing a more attractive offer, they said.

Kingspan, which has a market value of €13.4 billion, isn’t currently working on a formal takeover bid, some of the people said. If Carlisle did explore a sale, it could trigger fresh interest from the Irish company as well as other building materials rivals, they said.

A spokesman for Kingspan declined to comment, while a spokesman for Carlisle didn’t immediately provide comment.

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Carlisle makes building envelope products and solutions, including construction materials and weather proofing assets. The Scottsdale, Arizona-based firm announced plans this month to sell its Carlisle Interconnect Technologies unit that provides products to the aerospace and medical technologies markets, which would make it a pure-play construction supplier.

News of Kingspan’s approach for Carlisle comes just days after another mega Irish-to-US deal was announced. Dublin-based Smurfit Kappa and US firm WestRock said last week they are in talks to merge, potentially creating an industry giant with a market value of about $20 billion.

European companies are showing increased appetite to do deals in the US to benefit from more stable economy and President Biden-promoted investments in infrastructure, as well as deeper capital markets.

Kingspan in April announced plans to delist from the London Stock Exchange, marking another potential high-profile departure from the flagship UK market. Smurfit and WestRock also said this month they would be listed on the New York Stock Exchange.

In July, Kingspan agreed to buy a majority stake in Steico from its founder to add natural insulation and wood-based building envelope products. – Bloomberg

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