Kingspan buys two more PU board makers

Kingscourt, Ireland – Kingspan today announced that it has purchased two rigid PU insulated board makers, Synthesia of Spain and Balex Metal of Poland, subject to approvals.

Kingspan said the Synthesia purchase has given a position in rigid PU boards in Northern Spain and strengthened its push into South America.

No price was disclosed for Barcelona, Spain-based Synthesia, but Kingspan said the firm had revenue of EUR 275m in the year to 31 December 2016 and EBITDA of EUR 33m.

In the 12 months to 31 August 2017, Synthasia’s revenue was EUR 314m and EBITDA was EUR 24 m, Kingspan said.

Synthasia has eight plants in northern Spain and Panama. It employs about 575 people. These businesses trade as Huurre and Poliuretanos in Iberia and Central and South America. Kingspan recently entered South America with the purchase of  Isoleste Constructivos Isotermicos of Brazil.

Additionally, the purchase of Synthasia gives Kingspan a technology platform for systems similar to those used throughout the wider Kingspan Group.

The acquisition agreement is conditional on regulatory clearance, and is expected to complete during the first quarter of 2018.

Separately, Kingspan has agreed to acquire Balex Metal a Polish manufacturer of insulated panels and boards. Kingspan said that Balex had revenue to 31 December 2016 of EUR 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 added that ‘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.’

Gene Murtagh, Kingspan CEO, said: ‘These acquisitions mark a significant strategic step forward for Kingspan. They fit our existing businesses and geographic footprint, and in addition provide a technology platform that will complement our innovation.’