Kingspan Group has announced the acquisition of ThyssenKrupp Construction Group and Rigidal Industries LLC for a combined sum of around £75m.
The insulation and building envelope firm has acquired 100 per cent of European insulated panels business ThyssenKrupp Construction Group and Dubai-based manufacturer of composite panels and roofing systems, Rigidal Industries LLC.
ThyssenKrupp Construction Group has seven manufacturing plants in Germany, France, Belgium, Austria and Hungary and has been bought for around €65m (c£51m) of which €50m (c£39.3m) is cash on completion and €15m (c£11.8m) represents assumed past service pension liabilities.
The business had sales in the year to 31 March 2012 of €315m (c£247m) and recorded an operating loss of €5.7m (c£4.5m) in the period. It has gross assets of circa €101m (c£79.4m). The agreement is subject to local regulatory approval.
Meanwhile, Rigidal Industries LLC, a leading Middle Eastern manufacturer of composite panels and roofing systems based in Dubai, 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 (c£24.7m) of which US$30m (c£19.2m) is payable in cash on completion. Completion of the acquisition is subject to local approval.
The acquisitions will be funded in full from Kingspan’s existing debt facilities.
Kingspan chief executive Gene Murtagh said: “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.”