Kingspan, a global leader in high performance insulation and building envelope solutions, announced that it has made an offer to the Board of Recticel NV/SA (“Recticel”) to acquire its entire Insulation and Flexible Foams divisions for a total consideration of €700 million.
The offer is made subject to approval by the Board of Recticel, completion of customary due diligence and transaction documentation, and receipt of usual regulatory clearances.
Subject to the successful completion of the acquisition, Kingspan has entered into an exclusive back to back agreement with a third party for the disposal of all of the Flexible Foams businesses.
In a statement by the company said, “There can be no certainty that the offer to the Board of Recticel will result in an agreement being concluded or, if concluded, receiving regulatory approvals. A further announcement will be made if and when appropriate.”
The move is seen as a push to dilute the company’s reliance on the UK market and to spread across Europe.
In summing up 2018, Gene M. Murtagh, Chief Executive Officer, Kingspan Group PLC, said, “2018 was a year of strong growth for Kingspan, with the company delivering revenues of over €4bn for the first time. Performance has been robust in most of our major markets, and momentum has improved through the year. With the order book going into the new financial year ahead of the prior year period, we are confident in our near-term outlook. Notwithstanding this we remain mindful of challenges to growth, particularly the continuing uncertainty in the UK. However, the geographical diversification of the business, helped by our acquisitions last year to expand our footprint in Latin America, Southern Europe and India, means we are well placed to continue to deliver long-term returns to shareholders.”