Kingspan shares move little despite its first big acquisition since Grenfell probe

Kingspan's shares have been slow to recover having taken a hit last year from the company's inclusion in a probe into the Grenfell tower disaster in London.
Kingspan shares showed little movement despite the Co Cavan-based building insulation group making its first large acquisition since the inquiry into its role in the Grenfell tower block disaster in London eroded its share value late last year.
Kingspan has agreed to buy Danish insulation business Logstor for around ā¬253m. The deal is expected to gain regulatory approval and be completed around the middle of this year. Kingspan will fund the purchase from its existing credit facilities.
"The acquisition of Logstor marks an important step for Kingspan, as part of our strategy to develop our technical insulation proposition as a complementary business to core building insulation,ā said Kingspan chief executive Gene Murtagh.
Kingspan has made three bolt-on acquisitions since the turn of the year, but Logstor is considerably larger and ranks around the top-five deals Kingspan has ever undertaken.
Last month, Mr Murtagh said Kingspan has firepower of around ā¬2bn (in loan facilities and cash balances) to carry out acquisitions.
Still, the return to larger deals and the capacity for more did not move the dial on Kingspanās share price, which dropped from record highs of just over ā¬80 to around ā¬53 in November when it gave evidence in the Grenfell inquiry in London.
Kingspan had no role in the design of the cladding system used on Grenfell Tower, where 72 people died in a devastating fire in 2017. However, about 5% of the insulation used on the faƧade of the Grenfell building comprised Kingspanās K15 product. It was used without the companyās knowledge in a system which didnāt comply with the buildingās regulations.
Kingspanās share price recovered, to some degree, last month when it said it was carrying out āa rigorous reviewā of its UK Insulation Boards business.
However, the stock was still only trading at just over ā¬68 on the back of the acquisition announcement; less than 1% ahead of the previous close.
The Logstor deal will boost Kingspanās business in continental Europe (particularly in Germany, the Netherlands, Poland, France and Scandinavia) as well as north America and the Middle East. The Danish company generated revenues of ā¬244m last year.