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Kingspan in €253m purchase of Danish pipes group Logstor


Gene Murtagh, Kingspan CEO

Gene Murtagh, Kingspan CEO

Gene Murtagh, Kingspan CEO

Insulation giant Kingspan  is to buy  Logstor, a global supplier and manufacturer of pre-insulated pipe systems, for around €253m.

Cavan-headquartered Kingspan has entered into an agreement with Langley Co-Invest to buy 100pc of the shares of Logstor International Holding, the holding company of the Logstor Group.

The price for the business will be 1.9bn Danish crowns (€253m) including debt, which will vary depending on the specific amount of working capital and debt on completion of the purchase, according to a statement from Kingspan.

The deal will be fully funded from Kingspan's existing credit facilities.

In 2020, Logstor had audited revenues of 1.8bn crowns and trading profit of 210m crowns.

At the end of last year, Logstor had gross assets of 1.4bn crowns and on completion net assets excluding intangibles and goodwill are expected to be 543m crowns.

The acquisition is expected to enhance Kingspan's earnings on an annualised basis by around nine cent per share, the group said.

Logstor’s management team will remain with the company and will continue to manage and develop the business under the Logstor brand.

"The acquisition of Logstor marks an important step for Kingspan, as part of our strategy to develop our technical insulation proposition as a complementary business to core building insulation," said Kingspan CEO Gene Murtagh.

“Logstor is a great company with a dedicated workforce and superior products in an industry that will see strong growth in the years to come,” he added.

The company’s primary markets are in Scandinavia, Germany, Netherlands, Poland and France, but it also operates in North America, and the Middle East.

It has seven manufacturing facilities situated in Denmark, Finland, Poland and Sweden, and employs around 1,100 people in 14 different countries.

The acquisition is conditional on regulatory clearance and is expected to complete around the middle of the year.

Davy analyst Flor O'Donoghue said the price Kingspan is paying for the company will not extend it, “and leaves it with substantial room for further deals”.

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“With the agreement to acquire Logstor, Kingspan has taken an important step forward in developing its technical insulation offering,” he said.

Shares in Kingspan were up over 1.6pc in mid-morning trading in Dublin on Tuesday.

Last year, Kingspan saw its profit increase on the back of acquisitions.

Trading profit was up 2pc to €508.2m after the company accounted for the repayment of government Covid-19 supports worldwide.

Acquisitions contributed 7pc to sales growth and 6pc to trading profit growth in the year, according to annual results from the group.

Revenue fell by 2pc to €4.6bn when compared to 2019.

Kingspan chairman Eugene Murtagh will step down from the board after the company’s AGM next month, in a move that was first announced by the company last February.

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