Kingspan Group plc announces the acquisition of ThyssenKrupp Construction Group and Rigidal Industries LLC

Posted: 14th August 2012 08:42

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 €315m and recorded an operating loss of €5.7m in the period. It has gross assets of circa €101m. The purchase consideration is circa €65m, of which circa €50m is payable in cash on completion and circa €15m 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."

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