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18. May 2005

Kingspan buys UK panel maker

Irish insulation and building products group Kingspan has acquired Advanced Thermal Composites Ltd (ATC), Warrington, UK for around GBP21 million (EUR31 million). ATC manufactures composite sandwich panels and manufactures continuous polyisocyanurate (PIR) and discontinuous polyurethane panels mainly for cold storage and food preparation applications. Kingspan said it will pay GBP20m (EUR29m) on completion of the deal, with a further GBP1m (EUR1.5m) deferred consideration payable over a period of three years except in certain circumstances. This represents a multiple of 6 times historic EBITDA (earnings before interest, tax, depreciation and amortisation) and 6.4 times historic EBIT (earnings before interest and tax), said a 9 May Kingspan statement. ATC had sales of around GBP15.3m (EUR22m) and profit before tax of GBP3.3m (EUR4.5m) for the year ended 31 August 2004, and is expected to have net non-cash assets of £3.6m (EUR5.2m) at completion, according to Kingspan. The acquisition of ATC complements Kingspan's existing UK-based business, the Irish group added.

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