Insulation and building materials maker Kingspan is poised to complete its takeover of Sweden-based Nordic Waterproofing for almost €50 million.
The Irish group owns nearly 88 per cent of the Scandinavian roofing materials manufacturer, in which it first bought shares in 2022.
Nordic’s board confirmed on Tuesday that Kingspan was offering to buy out the remaining 12 per cent of the company for 555 million Swedish krona (€48.7 million).
That offer values Nordic Waterproofing at about €400 million in total.
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Nordic’s shares trade on Sweden’s stock exchange in Stockholm. Swedish law requires Kingspan to offer to buy out the remaining minority shareholders.
Nordic Waterproofing board unanimously recommended the offer on Tuesday.
“The board believes that the terms of the offer are attractive to the shareholders in Nordic Waterproofing and in all material aspects reflect the company’s present position and growth prospects,” said a statement.
It noted that independent advisers deemed the offer “fair from a financial viewpoint”.
Kingspan’s offer is 7 per cent higher than Nordic’s closing price on Monday.
Nordic makes products that waterproof roofs and buildings and which protect structures from the weather.
It employs about 1,300 people in factories in Denmark, Finland, Latvia, Norway and Sweden and sells its products throughout northern Europe.
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Nordic’s revenues last year were about €360 million and operating profits came in at €24 million, according to an analysis by Dublin stockbrokers Davy.
Kingspan’s move is not expected to affect workers. The Irish company’s offer also states that it has full confidence in Nordic’s management.
Davy analysts Flor O’Donoghue and Andrea Collins dubbed the move a “logical conclusion” to a process that began when Kingspan first bought into Nordic in 2022.
They argue that the €48 million Kingspan will have to pay to buy the remaining shares in the company is a “modest” sum.
Mr O’Donoghue and Ms Collins predict the move will boost Kingspan’s operating profits this year.
They maintain that taking over the business will have a significant impact on the Irish group’s roofing and waterproofing division this year.
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