Building materials group Kingspan has settled its dispute with the former shareholders of US flooring business Tate.
In a statement this morning, Kingspan said the deal involved a reduction of $36m (€26.9m) in the $120m price it paid for Tate in January 2001. The buy proved disappointing, as major contracts failed to materialise. The $36m has been received and recorded in Kingspan's 2004 accounts.
A panel of arbitrators in Washington ruled in favour of Kingspan in 2003, awarding the Irish company more than $40m plus interest, but this was appealed by the former Tate shareholders, pushing the row into the federal courts.
Kingspan said today's settlement ended all pending litigation 'as well as any assertions of wrongdoing on the part of the former Tate Global Corporation shareholders in connection with the sale of their stock'.
Kingspan said it would use the proceeds to reduce debt 'to facilitate the long-term development of the group'.
Kingspan shares closed three cent higher at €7.08 in Dublin this evening.
