In December 2017, the Kingspan Group announced three new acquisitions that would add to the portfolio of companies acquired by the insulation giant last year. With more than €630m spent on the ten new acquisitions in 2017, the company is expecting to turn over around €750m annually from these acquisitions alone.
The largest of the three is the proposed full acquisition of the Spanish group Synthesia. This will give Kingspan the leading position in insulation boards on the Iberian Peninsula and will also enable the the company to break through in emerging markets in Central and South America.
Synthesia uses similar chemical system technology to those in use throughout the Kingspan group’s manufacturing facilities. The acquisition will see Kingspan take control of Synthesia’s eight manufacturing facilities across Northern Spain and Panama, along with an estimated 575 employees, giving the company a strong boost in the region. The agreement is expected to clear in the first quarter of this year, pending regulatory clearance.
Kingspan’s has also agreed to acquire Balex Metal, a Polish based manufacturer of insulated panels and insulation boards; this acquisition is also expected to clear in the first quarter. With three manufacturing sites, Balex will contribute more than €160m revenue per annum to Kingspan’s overall income.
The third company to join the Kingspan group will be the Brakel Group, a Dutch based company with manufacturing sites across Netherlands, Belgium and Slovakia. The leader in glass daylight structures, associated ventilation and fire safety solutions projects annual revenue of approximately €68m that will be added to the Kingspan bottom line once the agreement has been cleared.
"These latest three acquisitions mark a signiﬁcant strategic step forward for Kingspan. They are a perfect ﬁt for our existing businesses and geographic footprint, and in addition provide a technology platform that will complement our on‐going innovation pipeline and the development of next generation insulation", commented Gene Murtagh, Kingspan Group CEO.