Kingspan acquires CRH Insulation Europe

Kingspan has today announced that it has agreed to acquire 100% of the shares and assets of CRH Insulation Europe (CIE), subject to statutory approval.

CIE has market leading positions in polyisocyanuarate (“PIR”) and expanded polystyrene (“EPS”) products across Western Europe, and comprises six business units in seven countries.

Consideration for the business is circa €120m, payable in cash on completion. The consideration is based on acquiring the business free of cash and bank debt, and will vary depending on the timing of completion and on actual debt or cash acquired.

Further contingent consideration up to €6m may be payable depending on future earn-out conditions being met.

"The acquisition of CRH Insulation Europe represents an excellent opportunity for Kingspan to assume a market leading position in Northern Europe and gives us the ability to develop and penetrate further into the wider European market," said Kingspan CEO Gene Murtagh.

"There are limited opportunities to acquire such market leading positions, particularly in high performance PIR, and this acquisition will provide a platform to drive growth and conversion to our products across Europe for many years to come in a positive regulatory environment."

In the 12 months to December 31, 2009, CIE had combined revenues of €240.5m and earnings before interest, tax, depreciation and amortisation, excluding exceptional items and management charges of €19.8m.

Operating profits for the period were €10.6m excluding exceptional items and management charges.

CIE had gross assets of €147.5m and net assets of €102.8m, excluding goodwill, at December 31, 2009.

Net assets acquired are not expected to be materially different from this number at completion, and EBITDA for the current year is likely to be circa €11m.

The current management teams of each of the business units of CIE will be transferring to Kingspan following completion which is expected in the first quarter of 2011.