Kingspan Group PLC Investment Update (5364Z)
December 15 2017 - 9:00AM
UK Regulatory
TIDMKGP
RNS Number : 5364Z
Kingspan Group PLC
15 December 2017
Kingspan Group plc
Investment Update
15 December 2017
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
EUR620m 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.
EUR750m.
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 EUR275m
and EBITDA of EUR33m for the same period. Unaudited revenues and
EBITDA for the twelve months to 31 August 2017 were EUR314m and
EUR24m 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 EUR160m 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 EUR68m. Following this
acquisition the Light & Air division is expected to exit the
year with c. EUR300m of annualised revenues.
Kingspan also today announces that it has agreed committed
financing of EUR225m. EUR175m 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 EUR50m.
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:
"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."
For further information contact:
Kingspan
Lorcan Dowd, Group Company
Secretary +353 42 9698000
Murray Consultants
Douglas Keatinge +353 1 4980300
This information is provided by RNS
The company news service from the London Stock Exchange
END
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