Kingspan announces potential spin-off of data centre focused segment

Kingspan chief executive Gene Murtagh. 

Insulation firm Kingspan has announced it is considering a potential spin-off of its data-centre ventilation focused segment ADVNSYS through an initial public offering (IPO) with plans for the company to remain the majority shareholder should it go ahead.

Kingspan said ADVNSYS is focused on bespoke critical infrastructure primarily in data centres, ventilation, and daylighting.

“With its innovative product suite and global scale, ADVNSYS is uniquely positioned to deliver a growing proposition for global customers in the rapidly expanding AI and data centre market,” Kingspan said.

According to Kingspan, ADVNSYS generated €1.5bn in revenue during 2024 with earnings before various deductions of €197m.

Kingspan said that the prospective IPO would unlock “meaningful value” for the firm’s shareholders “in highly rated technology and data centre capital markets”.

“It would give ADVNSYS a valuable sector profile in its own right, appealing to its customers and other stakeholders,” the firm said.

“In any potential IPO structure, Kingspan will remain a strong majority shareholder of ADVNSYS and will continue to consolidate its revenues and earnings.”.

Kingspan is listed on the Euronext Dublin stock exchange but this new company is likely to be listed in Amsterdam potentially during the first quarter of next year.

In a conference call with analysts, chief executive of Kingspan Gene Murtagh said the company would retain 75% of ADVNSYS after the flotation.

Two global investment banks have already been appointed to jointly lead the process, he added.

"If that was successful, both Kingspan as the parent and ADVNSYS would end up essentially with zero debt, and obviously huge runway for both the businesses to take it from there," Mr Murtagh said.

Additional reporting Reuters