Building materials group Kingspan has bought house manufacturer Century Homes in deal which could be worth up to €91m.
Century is owned by CEO Gerry McCaughey and his family and Jim McBride. As part of deal, its current senior management will stay with the company.
Century is based in Monaghan and employs 460 people. Century, set up in 1990, is the biggest timber-frame house supplier in Europe and has 40% of the market in Ireland. It makes 6,000 houses a year in Ireland. Century made operating profits of €9.6m last year on sales of €67m.
€74m of the purchase price will be paid in cash initially, but as Century is expected to have cash of €7m on completion of the deal, this gives a net figure of €67m. Another €24m is dependent on certain profits targets over the next three years.
'This deal is an overwhelming endorsement of the strength of Century Homes and sends the definitive message that timber frame homes are here to stay and are the future of Irish construction,' said Mr McCaughey.
Kingspan CEO Gene Murtagh said the buy would enhance its capability to become the leading player in the off-site low energy construction markets in the UK and Ireland.
Shares in Kingspan closed up 60 cent at €9.45 in Dublin.
