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22 Aug 2008 14:18
RNS Number : 9127B
Kingspan Group PLC
22 August 2008
Kingspan Group plc
Acquisition
22 August 2008
Kingspan Group PLC (“Kingspan”) announces the acquisition of Metecno USA, (“Metecno”)
Metecno, operating under the ASI, API and Benchmark brands, is the second largest manufacturer of composite sandwich panels in the US market, operating from three sites located in Florida, Ohio and California. Metecno also comprises a leading architectural metal wall and roof panel profile business, operating under the Morin brand, from two sites in Connecticut and California. The acquisition gives Kingspan critical mass in the United States, and when combined with existing Canadian market leadership, gives unrivalled geographical market reach in North America at a time when demand for insulation products is expected to increase due to economic and regulatory pressures.
Consideration for the business is circa $111m, being cash paid on completion for shares of $86m plus bank debt acquired of circa $25m. The consideration may vary depending on actual debt acquired.
In the 12 months to 30 June 2008, Metecno had consolidated revenues of $137m and Earnings Before Interest, Tax, Depreciation and Amortisation (“EBITDA”) of $15.5m excluding management charges. In the audited financial statements for the year ended 31 December 2007, Metecno had consolidated revenue of $134m, gross assets of $82m, and EBITDA of $13.6m excluding management charges. Net assets excluding goodwill and debt are expected to be approximately $49m at completion. The current senior management team of Metecno will be staying in the business following completion.
The acquisition is expected to be mildly earnings enhancing in 2008 and thereafter. The acquisition will be funded in full from existing Kingspan resources.
Gene Murtagh, Kingspan CEO, comments “The acquisition of Metecno represents an excellent opportunity for Kingspan to assume a market leading position in one of the largest construction markets in the world. We believe that the future opportunities should more than offset the current economic conditions in this market. By combining Metecno with our existing businesses in Canada, Kingspan has developed a very powerful and influential position in the North American market. Kingspan’s North American panel business now has six major facilities capable of serving the entire continent and significant available capacity in each. While composite panels have traditionally occupied only a very small position in the North American market, we believe that a combination of environmental and energy cost pressures, together with a market leading position, can pave the way for a growing penetration of this product range in the medium term.”
For further information contact:
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Murray Consultants
Ed Micheau
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+353 1 4980300
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Buchanan Communications
Tim Thompson/Jeremy Garcia
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+44 (0) 20 7466 5000
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This information is provided by RNS
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