London -- Kingspan Group plc has announced the takeover of Xtratherm, an insulation products manufacturer, after agreeing to pay €87 million for parent company Leanort Ltd.
The acquisition of Leanort, partly owned by the Hynes family, involves a €67 million cash offer and a €20 million settlement of Xtratherm's debt.
Kingspan, a manufacturer of construction products, will also enter into an option agreement to buy an Xtratherm property in the UK for €11 million.
Xtratherm manufactures polyisocyanurate (PIR) rigid board insulation for the British and Irish markets from facilities in Chesterfield in Britain and Navan in Co Meath, Ireland.
According to Kingspan, most of the senior Xtratherm management team will stay at the company.
Kingspan planned to fund the takeover from its resources and expected up to €20 million in future expenditure savings.
"The acquisition of Xtratherm represents an excellent opportunity for Kingspan to bolster its presence in the UK and Irish insulation markets during a dynamic time for the insulation industry,'' Kingspan CEO Gene Murtagh said in a statement.
''The increased output and spare capacity which Xtratherm brings to Kingspan represents an excellent opportunity to generate operational and capital expenditure savings and to harness the next wave of demand, driven by the regulatory and energy saving requirements of the market.''"
