Kingspan to spend €96m on acquisitions
Insulation specialist Kingspan is to spend more than €90 million on two acquisitions to expand its global business.
The group this morning said it had made an agreement with ThyssenKrupp Steel Europe to buy the share capital of companies in European insulated panels business ThyssenKrupp Construction Group for €65 million.
Kingspan will pay €50 million in cash for the group, which has gross assets of €101 million and made an operating loss of €5.7 million in the year to March 31st 2012. The group said the remaining €15 million will represent assumed past service pension liabilities.
ThyssenKrupp Construction Group has leading brands such as Hoesch, Isocab and EMS, along with manufacturing plants in Germany, France, Belgium, Austria and Hungary.
In a separate deal, Kingspan is also buying Rigidal Industries, a Dubai-based manufacturer of composite panels and roofing systems. The total price for the business is $38.6 million (€31 million), with $30 million to be paid in cash when the deal is closed.
Both deals are subject to local regulatory approval.
Kingspan said the acquisitions would be “modestly earnings accretive” in 2013.
Over the past few years, the group has been on the hunt for suitable good value acquisitions
Kingspan chief executive Gene Murtagh said today’s announcement was an exciting development for the group.
“These acquisitions represent another step in furthering the group’s global presence and route to market,” he said.