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Kingspan to acquire Building Solutions
Posted on Monday, 07 October 2019 15:00
Irish building materials company Kingspan has signed on the dotted line to pick up Building Solutions (National), a manufacturer and distributor of building envelope products.
Under the terms of the transaction, the buyer will acquire the business from SIG, a Sheffield-headquartered supplier of insulation, roofing, commercial interiors and specialist construction projects for GBP 37.50 million.
The consideration will be on a debt- and cash-free basis and is payable on completion.
Closing remains subject to the green light from the Competition & Markets Authority, among other conditions, although it is not yet clear when this is likely to take place.
Proceeds of the transaction have been earmarked for repaying SIG’s debt level.
The vendor’s chief executive, Meinie Oldersma, said the divestment is in line with the firm’s medium-term strategy of jettisoning peripheral, non-core activities identified as part of a strategic review in 2017.
According to SIG’s press release, Building Solutions is a leading manufacturer and distributor of building envelope solutions through brands such as Steadmans, United Roofing Products, Trimform Products and Advanced Cladding & Insulation.
The company recorded revenue of around GBP 60.00 million in 2018, while operating profit for the period stood at approximately GBP 3.30 million.
According to Zephyr, the M&A database published by Bureau van Dijk, SIG’s most recent asset sale was announced in June 2018, when it agreed to offload Sheffield-based fastener and fixings wholesaler VJ Technology to Primary Capital Partners for GBP 29.70 million.
The Building Solutions divestment does not represent the first time the group has done business with Kingspan; the latter bought phenolic pipe insulation manufacturer GRM for an undisclosed consideration in February 2018.
Other assets to have been jettisoned by SIG in recent years include the trade and assets of SIG Building Systems, as well as its plastics and windows businesses.
© Zephus Ltd