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Mark Stedman/Photocall Ireland
Kingspan chief executive Gene Murtagh
# Done Deal
Cavan's Kingspan snaps up US outfit for €60 million
The Irish giant is expected to target the US market aggressively after the deal.
IRISH INSULATION HEAVYWEIGHT Kingspan has bought up US company Pactiv for around €60 million, the company said today.
The Cavan-based company had revenues of €1.8 billion last year, turning a profit of €123 million.
The company is a specialist in insulation and building fabrics. The majority of its business is in mainland Europe and the UK, with North America its third busiest market.
Davy analyst Flor O’Donoghue said that the deal looked like a positive move for Kingspan on first appearances.
“It adds to the group’s presence in North America; the transaction multiples look reasonable; and, possibly most significantly of all, it opens a new frontier for Kingspan as it adds a direct insulation board operation for the group in the US.”
Gene Murtagh, chief executive at Kingspan, said that the deal “represents a new and exciting frontier for our insulation business in North America, giving us particular exposre to the residential sector.”
It is a tremendous opportunity for Kingspan to build upon the growing success of our existing insulated panel business throughout the region, and at a time when North America’s focus on energy efficiency and security is at an all-time high.
O’Donoghue said that the deal should add around 3% to Kingspan revenues every year with the strategic importance of a foothold in the North American market probably outweighing the impact of the deal on the Irish company’s bottom line.
