Kingspan buys Finnish materials firm for €20m
Kingspan did not formally announce the deal, but Paroc confirmed the sale, saying it supports its focus on building and technical insulation.
Paroc is headquartered in Helsinki and has facilities in Sweden, Norway, Denmark and Germany.
Kingspan is buying Paroc’s panels business PPS, which had sales of €47m last year. Its 100 employees will remain under the terms of the new deal.
“The arrangement supports the focus of Paroc on building and technical insulation. We will continue to seek market expansion and growth possibilities in those areas,” said Paroc.
Davy Stockbrokers suggested this deal brings Kingspan’s acquisition spend, over the last two years, to around €700m.
“This marks a significant step-up in activity and ambition,” said Davy’s industrials team.
“Importantly the ramp-up in investment has not been at the expense of the group’s financial stability, with net debt/ earnings before interest, tax, depreciation, and amortisation likely to close at around one times.”
While the PPS deal may be small by comparison to other Kingspan deals, in that it will only add around 2% to the revenues of the Cavan group’s core insulated panels division, Davy sees it being significant as it broadens the group’s international scope.
“The insulation market in the Nordic region is dominated by fibre, affording Kingspan the opportunity to gain market share with its premium product range,” Davy said.
