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

Kingspan, the global leader in high performance insulation and building envelope systems, is 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 USD39m in the year to 30 June 2012. The consideration, on a debt free cash free basis is USD 38.6 million of which USD 30 million is payable in cash on completion. Completion of the acquisition is subject to local approval.

Kingspan has also announced 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 March 31st 2012 of EUR 315 million and recorded an operating loss of EUR 5.7 million in the period. It has gross assets of circa EUR 101 million. The purchase consideration is circa EUR 65 million of which circa EUR 50 million is payable in cash on completion and circa EUR 15 million 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.

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.

Source - Kingspan

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