THE Kingscourt-based building materials group, Kingspan, has announced the acquisitions of the remaining 50 per cent shareholding in Kingspan Nederland for £2.6 million and Escon for £350,000. They would consolidate its market position in the Benelux market, said Kingspan Group.
The deals will be earnings enhancing. Kingspan Nederland generated a profit before tax of £820,000 on net assets of £3 million in 1995. This puts the consideration on a profit multiple of 6.3. Kingspan Nederland has been generating "satisfactory profits" but "more importantly" it purchased a significant amount of composite panels from the Irish and British plants, the statement said.
This "remains an important component in keeping the Kingscourt and Holywell plants at optimum production levels".
Kingspan acquired the first 50 per cent stake in 1988. There will no change in the management, according to a spokesman, following the acquisition of the outstanding shares.
Some of the management in Kingspan Nederland will be involved in the expansion of Escon, which is a small Belgian company trading in cladding and insulation products. Escon generated a profit before tax of £100,000 on net assets of £110,000 in 1995.
It is expected buy between £2.5 million and £3 million of Kingspan's products, following the acquisition. Escon's name is to be changed to Kingspan Belgium.
The combined sales of Kingspan Nederland and Escon will be £15 million. Any improvement in sales will benefit the Irish and British plants of Kingspan Group, the statement said.
