Kingspan’s €240m bid for Belgian firm ‘turned down’

CAVAN-based building materials group Kingspan has reportedly had a €240 million approach for a Belgian insulation business turned down.

A report by Belgian newspaper L’Echo said that Kingspan approached Brussels-based firm Recticel with a view to buying its insulation division — Kingspan’s own main area of focus — which accounted for around 13% of the Belgian company’s sales and nearly 60% of its profits in 2009.

The report — which quoted a Recticel spokesperson as saying, “insulation is, simply put, our division with the most potential” — said that the offer was made during the middle of last year, with the Belgian firm refusing on the grounds that it considered most of its growth potential to come directly from the insulation division. Kingspan declined to comment on the report.

Kingspan has since strengthened its presence in the mainland European insulation market with the €120m acquisition of CIE — CRH’s insulation business on the continent — and that deal is expected to be concluded by the end of March. The Cavan firm is using that deal to assume a market leading position in Northern Europe, as well as a way of gaining a further foothold in Europe.

The company’s strong balance sheet puts it in a good position to be able to look at various acquisition opportunities as they arise — something it is thought it is continuing to do.

In a brief research note on Kingspan, Bloxham Stockbrokers said that the group’s primary focus in 2011 will be on integrating its acquired businesses.

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