Building materials group Kingspan has agreed to buy UK-based insulation board makers Hytherm and Xtratherm in a deal which could be worth up to €87m.
Kingspan is buying the holding company, Leanort, from the Hynes family and others. It had confirmed in May that it was in talks about the acquisition.
Under the deal, Kingspan will buy 100% of Leanort for €67m and will also acquire up to €20m in debt when the deal is complete. Xtratherm had revenue of €68m and pre-tax profits of €6m last year.
Kingspan chief Gene Murtagh said the buy represented an excellent opportunity for the company to bolster its presence in the UK and Irish insulation markets. He added that Xtratherm's spare capacity would also generate savings.
Kingspan said the deal would result in up to €20m of savings and would be earnings enhancing from 2007.
