Kingspan, a manufacturer of sustainable products for the construction industry, has announced it has completed the acquisition of MeTecno, Inc. a manufacturer of composite sandwich panels. The acquisition includes all its divisions - API, ASI, Benchmark and Morin. The company now operates as Kingspan Insulated Panels, Inc. Its four divisions are Kingspan API, Kingspan ASI, Kingspan Benchmark, and Morin. The acquisition is expected to be mildly earnings enhancing in 2008 and thereafter. The acquisition will be funded in full from existing Kingspan resources.
Greg Murtagh, Kingspan CEO, comments, "The acquisition of MeTecno represents an excellent opportunity for Kingspan to assume a market leading position in one of the largest construction markets in the world ... Kingspan's North American panel business now has six major facilities capable of serving the entire continent and significant available capacity in each. While composite panels have traditionally occupied only a very small position in the North American market, we believe that a combination of environmental and energy cost pressures, together with a strong market leader, can pave the way for a growing penetration of this product range in the medium term."
Net assets excluding goodwill and debt are expected to be approximately $49m at completion. The current senior management team of MeTecno will be staying in the business following completion.