Kingspan Group PLC Acquisition (7686J)
August 10 2012 - 4:58AM
UK Regulatory
TIDMKGP
RNS Number : 7686J
Kingspan Group PLC
10 August 2012
Kingspan Group plc
Acquisition
10 August 2012
Kingspan Group plc ("Kingspan") announces the acquisition of
ThyssenKrupp Construction Group and Rigidal Industries LLC
Kingspan, the global leader in high performance insulation and
building envelope systems, is pleased to announce that it has
entered into an agreement with ThyssenKrupp Steel Europe AG to
acquire 100% of the share capital of the various companies which
comprise ThyssenKrupp Construction Group, the leading European
insulated panels business.
ThyssenKrupp Construction Group, which includes market leading
brands including Hoesch, Isocab and EMS, has seven well invested
manufacturing plants in Germany, France, Belgium, Austria and
Hungary. The business had sales in the year to 31 March 2012 of
EUR315m and recorded an operating loss of EUR5.7m in the period. It
has gross assets of circa EUR101m. The purchase consideration is
circa EUR65m, of which circa EUR50m is payable in cash on
completion and circa EUR15m represents assumed past service pension
liabilities. The consideration is based on acquiring the business
free of cash and bank debt and will vary depending on the timing of
completion. The agreement is subject to local regulatory
approval.
Separately, Kingspan is also pleased to announce that it has
agreed to acquire 100% of the share capital of Rigidal Industries
LLC, a leading Middle Eastern manufacturer of composite panels and
roofing systems based in Dubai with an extensive route to market in
the Gulf region. It had sales of US$39m in the year to 30 June
2012. The consideration, on a debt free cash free basis, is
US$38.6m of which US$30m is payable in cash on completion.
Completion of the acquisition is subject to local approval.
These acquisitions are expected, in aggregate, to be modestly
earnings accretive in 2013 having regard to the restructuring and
integration initiatives to be implemented in the ThyssenKrupp
business. The acquisitions will be funded in full from Kingspan's
existing debt facilities.
Gene Murtagh, Kingspan CEO, commented:
"These acquisitions are an exciting development for Kingspan.
The ThyssenKrupp business will transform our Mainland Europe
insulated panels market presence in a region where market
penetration is growing, rooted in the need for more energy
efficient buildings. The Rigidal Industries LLC business is an
excellent platform to develop our existing business and market
presence in the Gulf region where demand is growing. These
acquisitions represent another step in furthering the Group's
global presence and route to market."
This information is provided by RNS
The company news service from the London Stock Exchange
END
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