Kingspan has €12m Norway acquisition all wrapped up


Kingspan CEO Gene Murtage said that the group's geographical footprint continued to expand,
Kingspan CEO Gene Murtage said that the group’s geographical footprint continued to expand, “with development activity in Latin America, southern Europe and India opening up exciting growth opportunities”. Photo: David Conachy

Kingspan has completed the €12.3m acquisition of the Norwegian company Vestfold Plastindustri.

The Cavan-based group bought the water-treatment business as part of a wider group strategy to expand into the Nordic markets.

“Progress in the Nordics has been compelling,” Kingspan said in its interim trading report last month.

The group is set to continue its expansion in the region next year, when it opens a new Kooltherm facility in Sweden.

In the six months to June 30, the insulation maker invested some €335m, of which €265m was on acquisitions.

An additional €70m was spent on internal capital projects across the business.

Commenting on the company’s recent acquisitions, Kingspan CEO Gene Murtage said that the group’s geographical footprint continued to expand, “with development activity in Latin America, southern Europe and India opening up exciting growth opportunities”.

Since June 30, the group has continued its spending and expansion spree, completing the acquisition of Balex in Poland and establishing Kingspan Jindal in India for a combined cost of €220m.

In a note following the release of Kingspan’s first-half trading update for 2018, analysts at Goodbody said that the group’s recent acquisitions were performing “ahead of expectations”.

It continued: “(This) demonstrates management’s strong competency on merger and acquisition execution.”

Despite what the group described as a “sluggish” start to 2018, revenue at Kingspan surpassed the €2bn mark for the first time in the six months to June 30.

Trading profit was up 10pc at €195.3m, in a performance that was ahead of analysts’ expectations.

Acquisitions during the period contributed 15pc to sales growth and 12pc to trading profit growth.

Irish Independent

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