27th Jan 2015 08:59
LONDON (Alliance News) - Irish building materials company Kingspan Group PLC announced Tuesday that it has acquired Belgian steel manufacturer Joris Ide Group for around EUR315 million, having confirmed it was in "advanced discussions" with the company earlier this week.
Kingspan, which manufacturers insulated panels and rigid insulation boards, said the acquisition significantly extends its market reach in Europe. It said the EUR315 million is inclusive of debt, and is paying for the acquisition via a combination of cash, debt, and the issue of three million Kingspan shares to Bremhove NV, which is the holding company of the founder and major shareholder Joris Ide.
It also said the acquisition is expected to enhance earnings by around 7% each year.
Joris Ide also is a manufacturer and supplier of insulated panels and other products, and has a strong presence in France, Belgium, the Netherlands and Luxembourg, with its five insulated panel manufacturing facilities in Belgium, Germany, Romania and Russia, and 11 regional manufacturing sites across Europe. In 2014, Joris Ide recorded revenue of EUR465 million and earnings before interest, taxes, depreciation and amortisation of EUR36 million.
The group said the acquisition is still conditional on regulatory clearance, which it expected to be completed towards the end of the first quarter.
Kingspan also said that it has negotiated EUR127.5 million private placement loan notes and agreed additional bilateral debt facilities of EUR190 million. It said the weighted average coupon on the new notes is 1.92%, with weighted average maturities of eight years.
The group said it will used the proceeds from the loan notes to repay private placement loan notes which are due to mature in March this year. It said it will use the additional loan credit facilities to fund both the Joris Ide and Vicwest acquisitions.
The group announced it was buying the building products division of Canadian company Vicwest Inc last November.
Kingspan shares were trading 0.3% higher Tuesday morning at 15.37 pence.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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