Building materials group Kingspan has announced the successful placing of a syndicated credit facility of €350 million in a move designed to fund its expansion over the next five years.
The Cavan firm said the funding had been put in place to facilitate growth through continued expansion and acquisition.
"The syndicated credit facility reinforces our stated strategy of expansion by organic growth, and via selective acquisitions," finance director Mr Dermot Mulvihill said.
IIB Bank and KBC Bank acted as mandated lead arranger on the deal for Kingspan, which recently announced that Mr Gene Murtagh Jr would take over as chief executive from his father from January.
Kingspan is expected to have net debt of around €105 million at year end, and interest cover in the high teens, while it has yet to receive the $40 million (€29.9 million) it is due from the Tate arbitration process in the US.
Company broker Davy noted that Kingspan appeared to be signalling that it might become "a bit more aggressive in seeking deals". However, it believes any acquisitions are likely to be small and bolt-on.
"Composite panels in central and eastern Europe, insulation boards in continental Europe and off-site in the UK are all areas that Kingspan may target," Davy said.
The company's last major acquisition, the $120 million purchase of US flooring business Tate at the end of 2000, proved a headache for Kingspan, as promised orders failed to materialise.
The business is now back to profitability and Kingspan has been awarded $40 million, following an arbitration process involving the former owners of Tate.
