Business Irish

Tuesday 17 September 2019

Kingspan offer 'lacking critical information' – Recticel

Kingspan CEO Gene Murtagh has led European expansion at the group
Kingspan CEO Gene Murtagh has led European expansion at the group
Ellie Donnelly

Ellie Donnelly

Kingspan’s offer of €700m for two divisions of Recticel is "lacking critical information items", the Belgian group has said.

Cavan-headquartered Kingspan earlier this week made a bid for Recticel’s insulation and flexible foams business.

Kingspan said it has already entered into an exclusive back-to-back agreement with a third party who will buy Recticel's flexible foams businesses, should the initial deal go ahead.

However, today Recticel said it was seeking information and clarification on a number of items, including clarification on anti-trust risks associated with the potential deal and the reduction of such risks.

In addition, it wants further information on the identity, rationale, anti trust risk and consideration in respect to the back-to-back agreement to sell the foams business, as well as information on the implications for Recticel’s shareholders of a potential transaction with Kingspan.

Once it receives this information the board of Recticel will review the offer further.

Should the deal go through it would tighten Kingspan's grip on the European insulation market, adding Recticel's manufacturing units in Belgium, France, Britain and Slovenia.

Robert Eason, analyst at Goodbody, said the potential deal makes "strategic and financial sense for Kingspan."

"However it is important to note that this potential transaction is at a very early stage in the process and as such, we can expect some back and forth near term with consummation of any deal likely being in 2020," Mr Eason added.

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