Kingspan may still buy German rival

INSULATION SPECIALIST Kingspan is still in the running to buy a rival in Germany, according to chief executive Gene Murtagh.

While he did not name the company, it is understood to be a division of manufacturing giant ThyssenKrupp which makes insulation panels, one of the businesses in which Kingspan specialises.

Earlier, shareholders at the group’s agm heard that sales rose 8 per cent to €473 million in the first four months of 2012. The company said sales in mainland Europe rose 9 per cent during the January-to-April period. Sales in the UK rose 2 per cent and were up 10 per cent in North America.

The group had also been named as a suitor for North American manufacturer Metl-Span, which was sold by its Australian parent, Bluescope, to NCI Building recently.

Speaking after the meeting, Mr Murtagh said Kingspan had recently dropped out of the running for a US business, and indicated that the Irish group believed the price sought was too high.

Kingspan recently refinanced €300 million worth of syndicated bank debt. Seven international banks and one domestic bank are jointly providing the facility, which has yet to be drawn down.

The group’s statement said the new syndicate had a stronger international dimension than the outgoing one. Kingspan’s debts have an average maturity, or repayment time, of just under five and a half years. Net debt at the end of April was about €185 million, up €14.5 million on last year.

Kingspan said the year opened with more optimism regarding activity levels in some construction markets, but this had since dissipated somewhat. “The UK market is solid generally, with overall volumes flat, reflecting the wide range of end uses for our products,” the group’s interim statement said.

In Europe, the Dutch market has been difficult, and sales declined during the first four months of the year. In contrast, Germany was buoyant, with increased market penetration underpinning growth.

Mr Murtagh noted after the meeting that Kingspan’s Irish business had slipped slightly during the opening months of the year.