Kingspan is to buy European insulation provider Logstor in a deal that could be worth up to DKK1,885 million (€253 million).
The acquisition, which is expected to be complete by the middle of the year, will be fully funded from Kingspan’s existing credit facilities. Kingspan said the final total will depend on the amount of working capital and debt on completion.
Logstor supplies technical insulation solutions encompassing complete pre-insulated pipe systems for district energy and associated applications, with its main markets in Scandinavia, Germany, Netherlands, Poland and France.
The company also operates in other European countries, and has operations in North America and the Middle East. It has seven manufacturing facilities in Denmark, Finland, Poland and Sweden, and employs about 1,100 people in 14 different countries.
Trading profit
In the 12 months to December 31st, Logstor had audited revenues of DKK1,817 million and trading profit of DKK210 million.
Under the deal, the existing management team will remain and continue to manage and develop the business under the Logstor brand.
"The acquisition of Logstor marks an important step for Kingspan, as part of our strategy to develop our technical insulation proposition as a complementary business to core building insulation," said Kingspan chief executive Gene Murtagh.
“Logstor is a great company with a dedicated workforce and superior products in an industry that will see strong growth in the years to come. We are looking forward to supporting its ambitious journey ahead.”
