Kingspan has just announced that it has entered into an agreement with Langley Co-Invest S.à r.l. (part of the Triton Fund III), to acquire 100% of the shares of Logstor International Holding S.à r.l., the holding company of the Logstor Group (‘Logstor’).

Logstor is a leading global supplier of technical insulation solutions encompassing complete pre-insulated pipe systems for District Energy and associated applications. Logstor’s primary markets are in Scandinavia, Germany, Netherlands, Poland, and France, but it also operates in other European countries as well as 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.

Gene Murtagh, Kingspan CEO, commented: “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. 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. We are looking forward to supporting its ambitious journey ahead.”

The consideration for the business will be kr1,885m (approx. €253m) inclusive of debt which will vary depending on the specific amount of working capital and debt on completion. The consideration is payable in full on completion. In the 12 months to 31 December 2020 Logstor had audited revenues of kr1,817m (€244m) and Trading Profit of kr210m (€28m).  As of 31 December 2020, Logstor had gross assets of kr1,392m (€187m), and on completion net assets excluding intangibles and goodwill are expected to be kr543m (EUR73m).  The acquisition is expected to enhance Kingspan’s earnings on an annualised basis by circa 9 cent per share.

The existing management team will be retained in the business and will continue to manage and develop the business under the Logstor brand. The acquisition is conditional on regulatory clearance and is expected to complete around the middle of the year. The acquisition will be fully funded from Kingspan’s existing credit facilities.