Building insulation specialist Kingspan has entered into agreements to buy two firms for a combined price of nearly €100m
The deals see the Cavan-headquartered company finalise a transaction it has been tracking for a number of months, while also expanding its geographical presence into the Middle East for the first time.
The bigger of the two transactions sees Kingspan buy the construction-focused arm of German steel giant, ThyssenKrupp — ThyssenKrupp Construction — for around €65m. The business includes a number of leading European brands and has seven well-invested manufacturing plants across the continent in Germany, Austria, Belgium, France and Hungary.
The company generated sales of €315m, in its last financial year, but also recorded an operating loss of €5.7m. The total purchase price will see Kingspan pay €50m in cash on completion of the deal, with €15m representing assumed past service pension liabilities. The final consideration is based on the acquisition of the company free of cash and bank debt and will depend on timing of completion. The Thyssen deal is also subject to local regulatory approval.
Meanwhile, the Cavan company also, yesterday, announced the acquisition — pending local approval — of Dubai-based company Rigidal Industries, a leading Middle Eastern manufacturer of composite panels and roofing systems with a strong business network in the Gulf region.
Kingspan is buying Rigidal, on a debt and cash-free basis, for €31.4m, of which €24m is payable in cash on completion.
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