Kingspan Group plc ("Kingspan"), the global leader in high performance insulation and building envelope solutions, today issues an Investment Update.
In total year to date, Kingspan has committed investment of over €620m on ten acquisitions (including the three announced today and the previously announced acquisitions of Isoeste in Brazil and CPI in the United States) with combined annualised revenues of c. €750m.
The largest of these is the proposed acquisition of 100% of the Synthesia group ("Synthesia"), consisting of three operating businesses: Synthesia International, Poliuretanos and Huurre. Synthesia had Revenues for the year to 31 December 2016 of €275m and EBITDA of €33m for the same period. Unaudited revenues and EBITDA for the twelve months to 31 August 2017 were €314m and €24m respectively. Through its Huurre and Poliuretanos businesses, the Synthesia group gives Kingspan a leading position in both Insulated Panels and Insulation Boards on the Iberian Peninsula and strengthens its emerging Insulated Panels presence in Central and South America. It also provides an excellent technology platform for blended chemical systems similar to those used throughout the wider Kingspan Group. Synthesia is headquartered near Barcelona, with eight manufacturing facilities across Northern Spain and Panama and approximately 575 employees across all businesses. The acquisition agreement is conditional on regulatory clearance, and is expected to complete during the ﬁrst quarter of 2018.
In addition to the above Kingspan has agreed to acquire Balex Metal sp. z.o.o. ("Balex"), a Polish based manufacturer of Insulated Panels and Insulation Boards with Revenues to 31 December 2016 of €160m across ﬁve manufacturing sites. The Balex acquisition is conditional on regulatory clearance, and is expected to complete towards the end of the ﬁrst quarter of 2018.
Kingspan has also recently completed the acquisition of the Brakel Group, a Dutch based leader in the Light & Air sector with manufacturing sites in the Netherlands, Belgium and Slovakia with Revenues to 31 December 2016 of €68m. Following this acquisition the Light & Air division is expected to exit the year with c. €300m of annualised revenues.
Kingspan also today announces that it has agreed committed ﬁnancing of €225m. €175m of this comprises private placement loan notes with weighted average maturities of 8.5 years and an average ﬁxed coupon on the new notes of 1.57%. Kingspan has separately negotiated an additional bilateral facility of €50m. These funds, together with cash and drawings from the previously undrawn Revolving Credit Facility, will be used to fund the above announced acquisitions and for further strategic development.
As noted in our Trading Update dated 13 November 2017, trading across many of our markets remains encouraging, with the exception of the UK which has experienced further weakness through November and early December against a backdrop of continuing political uncertainty. Notwithstanding this we still expect to meet the current year guidance given in our Trading Update. Kingspan will issue its preliminary results for the year ended 31 December 2017 on Friday 23 February 2018.
Gene Murtagh, Kingspan Chief Executive Oﬃcer, commented: