Kingspan, the building materials group, is seeking acquisition opportunities in the USA and is engaged in protracted negotiations to take over a Polish company, which should be completed later this year, Mr Eugene Murtagh, group chairman and chief executive, said yesterday.
Speaking after the company's a.g.m., Mr Murtagh said Kingspan would like to get a footing in the US market. This would involve an acquisition of a reasonable size with a regional footing on which the company could subsequently build to achieve nationwide coverage.
Mr Murtagh said he saw potential for all the group's product range in the US but particularly paneling, environmental containers and raised floors. He said the group was engaged in two-year takeover negotiations with a Polish firm and he expected these to be concluded later this year. Negotiations had stumbled over the size of the Polish workforce, which Kingspan wants to reduce from 1,000 to 200 people, he added.
Mr Murtagh said the group would not pay for acquisitions through a rights issue or a share swap but rather would use some €260 million savings against current debt, he said.
Earlier in his address to shareholders Mr Murtagh said the year had started well and volumes in the first quarter were on budget. One shareholder asked if Mr Murtagh had any plans to separate his role as chairman and chief executive in Kingspan. Mr Murtagh said it was inevitable that this would happen but would not comment on the matter.
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