Acquisition

RNS Number : 0989T

Kingspan Group PLC

23 March 2021

 

Kingspan Group plc

Acquisition

23 March 2021

Kingspan Group plc ("Kingspan") announces the acquisition of Logstor

Kingspan, the global leader in high performance insulation and building envelopes, is pleased to announce that it has entered into an agreement with Langley Co-Invest S.à r.l. (part of the Triton Fund III), to acquire 100% of the shares of Logstor International Holding S.à r.l., the holding company of the Logstor Group ("Logstor").

Logstor is a leading global supplier of technical insulation solutions encompassing complete pre-insulated pipe systems for District Energy and associated applications. Logstor's primary markets are in Scandinavia, Germany, Netherlands, Poland and France, but it also operates in other European countries as well as North America, and the Middle East. It has seven manufacturing facilities situate in Denmark, Finland, Poland and Sweden, and employs around 1,100 people in 14 different countries.

The consideration for the business will be DKK1,885m (approx. EUR253m) inclusive of debt which will vary depending on the specific amount of working capital and debt on completion.  The consideration is payable in full on completion. In the 12 months to 31 December 2020 Logstor had audited revenues of DKK1,817m (EUR244m) and Trading Profit of DKK210m (EUR28m).  As at 31 December 2020, Logstor had gross assets of DKK1,392m (EUR187m), and on completion net assets excluding intangibles and goodwill are expected to be DKK543m (EUR73m).  The acquisition is expected to enhance Kingspan's earnings on an annualised basis by circa 9 cent per share. 

The existing management team will be retained in the business, and will continue to manage and develop the business under the Logstor brand. The acquisition is conditional on regulatory clearance, and is expected to complete around the middle of the year. The acquisition will be fully funded from Kingspan's existing credit facilities.

Gene Murtagh, Kingspan Chief Executive Officer, commented:

"The acquisition of Logstor marks an important step for Kingspan, as part of our strategy to develop our technical insulation proposition as a complementary business to core building insulation. Logstor is a great company with a dedicated workforce and superior products in an industry that will see strong growth in the years to come. We are looking forward to supporting its ambitious journey ahead."

For further information contact:

Kingspan Gene Murtagh/Geoff Doherty	[phone]
Murray Consultants Douglas Keatinge	[phone]

 

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