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Kingspan buys ThyssenKrupp Construction

13 Aug 12 Kingspan has entered into an agreement with ThyssenKrupp Steel Europe to acquire all the share capital of the ThyssenKrupp Construction Group insulated panels business.

Separately, Kingspan has agreed to acquire 100% of the share capital of Rigidal Industries, a Middle Eastern manufacturer of composite panels and roofing systems based in Dubai.

ThyssenKrupp Construction Group, whose brands include Hoesch, Isocab and EMS, has seven manufacturing plants in Germany, France, Belgium, Austria and Hungary. The business had sales in the year to 31 March 2012 of €315m (£247m) and recorded an operating loss of €5.7m in the period. It has gross assets of about €101m. The purchase consideration is approximately €65m, of which about €50m is payable in cash on completion and about €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. 

Rigidal Industries had sales of US$39m (£24.9m) in the year to 30 June. 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.

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"These acquisitions are an exciting development for Kingspan,” said Kingspan CEO Gene Murtagh. “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."

Kingspan said that the acquisitions are expected to make modest earnings in 2013 having regard to restructuring and integration initiatives to be implemented in the ThyssenKrupp business.  The acquisitions will be funded in full from Kingspan's existing debt facilities.

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