11th Nov 2014 13:05
LONDON (Alliance News) - Kingspan Group PLC on Tuesday said it has secured a deal to buy the building products arm of Canadian group Vicwest Inc for CAD154.5 million.
The assets to be bought comprise three insulated panel manufacturing plants and a range of profiling facilities in Canada and the US, and the consideration on the deal includes debt and reorganisation costs.
The assets posted earnings before income, taxation, depreciation and amortisation of CAD13.2 million for the year to December 2013, on revenue of CAD253.7 million.
Under the deal, Kingspan will buy the entire issued share capital of Vicwest and will then transfer the Westeel business and assets to Ag Growth International. The total deal consideration is CAD376 million, of which Kingspan will cover CAD154.5 million and Ag Growth will fund CAD221.5 million.
The deal will be funded from Kingspan's existing credit facilities.
"The acquisition of Vicwest Building Products boosts Kingspan's ability to drive conversion of the North American construction market to more energy-efficient Insulated Panels, coming at a time when the energy agenda in North America is becoming increasingly persuasive," said Kingspan Chief Executive officer Gene Murtagh.
Shares in Kingspan were up 2% to 12.88 pence on Tuesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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