Kingspan buys insulation firm in Australia

INSULATION AND building materials specialist Kingspan has expanded its position in the Australian market with a new acquisition.

The Cavan-based company confirmed yesterday that it has bought an Australian company, Air-Cell Innovations, which had sales of €14.4 million in the 12 months ended June 30th.

Kingspan said the company was a leading distributor of flexible reflective insulation foil products. It is headquartered in Perth, but has a presence across the Australian market.

It has established offices and distribution networks throughout New Zealand, Asia, the Middle East and the Pacific.

The Irish group already has operations in Australia.

In a statement yesterday, it said that the purchase of Air-Cell and its comprehensive route to market added a new product to its portfolio “as well as presenting further opportunities to enhance Kingspan’s existing insulation board sales in the Australian and New Zealand markets”.

It added that current building regulations in Australia should benefit insulation products in coming years.

Kingspan’s focus is on energy-saving products.

As well as retaining heat in cold weather, insulation can keep buildings cool in warm weather, reducing the need for air conditioning.

Goodbody analyst Robert Eason estimated yesterday that Kingspan had the firepower to spend up to €100 million on developing its new Australian business, which has been classed as a bolt-on acquisition.

While Kingspan’s profits have suffered as a result of the slowdown in building in its main markets in Europe and the US, it has a strong balance sheet and cash position.

The group has cut debt this year by €110 million to €190 million, a performance that was ahead of the forecasts of analysts.