The Urethane Blog

Kingspan Acquisitions

Kingspan announces three acquisitions

On 15 December 2017, the Irish Kingspan Group plc announced that it has agreed to acquire 100 % of the Synthesia group, consisting of the three operating businesses Synthesia Espanola S.A., Poliuretanos S.A., Huurre Iberica S.A. and their subsidiaries. The acquisition agreement, which was entered into with Monsax S.L., Isoblok S.L., Inversiones Landa S.A. and others, is conditional on regulatory clearance and is expected to complete during the first quarter of 2018. The total consideration payable by Kingspan for the businesses will be EUR 250 million inclusive of debt.

According to Kingspan, the Synthesia group had revenues for the year to 31 December 2016 of EUR 275 million and EBITDA of EUR 33 million for the same period. Unaudited revenues and EBITDA for the twelve months to 31 August 2017 were EUR 314 million and EUR 24 million, respectively. Through its Huurre and Poliuretanos businesses, the Synthesia group will give Kingspan a leading position in both insulated panels and insulation boards on the Iberian Peninsula and strengthen its emerging insulated panels presence in Central and South America. It will also provide a 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 existing Synthesia management teams will be retained in the businesses, said Kingspan.

In addition, the company has agreed to acquire Balex Metal sp. z.o.o., a Polish manufacturer of insulated panels and insulation boards with revenues to 31 December 2016 of EUR 160 million 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 leader in the Light & Air sector with manufacturing sites in the Netherlands, Belgium and Slovakia with revenues to 31 December 2016 of EUR 68 million. Following this acquisition the Light & Air division is expected to exit the year with approximately EUR 300 million of annualised revenues.

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.”

Kingspan said that in total it has committed investment of over EUR 620 million on ten acquisitions in 2017 (including the three mentioned above and the previously announced acquisitions of Isoeste in Brazil and CPI Daylighting in the USA) with combined annualised revenues of approximately EUR 750 million.