Shares in Kingspan fell 3% as the building materials group ruled out resurrecting its €700m bid for Belgian firm Recticel’s insulation division.
Kingspan chief executive Gene Murtagh told the firm’s annual shareholders’ meeting that despite twice reaching a provisional agreement with Recticel, the Belgian mattress firm had ultimately refused the bid.
While it would have been a good addition to Kingspan’s business, Mr Murtagh said the deal “wasn’t to be”.
Broker Goodbody said Kingspan was still in a good position to make attractive acquisitions.
“We are forecasting for trading profits to grow by 8%-9% to €483m and Kingspan has the ability to add to this by utilising its strong balance sheet on the many potential opportunities that exist from its growing geographic platform,” Goodbody said.
In an update, Kingspan said it had a “positive start” to 2019, with an increase of 18% in group sales in the three months to the end of March compared to the same period in 2018.
The €1.06bn in group sales was helped by positive UK activity while mainland Europe traded solidly across the region, it said.
The US performed well, Canada recorded solid growth and Latin America performed strongly, the firm said.
Kingspan said it was mindful of “unfavourable rhetoric around the direction of the global economy” and the possible impact it may have on its business, but that it was confident in its position over the “longer haul”.
Shares in the firm are up almost 19% in the past year to value it at just under €8.21bn.