Kingspan Announces Acquisition of Ondura

KINGSPAN GROUP PLC has announced its intention to acquire the French headquartered roofing product manufacturer, Ondura Group.

Kingspan, Ireland-based manufacturer of insulation and building envelope solutions, signed an exclusive option agreement yesterday to acquire Ondura from French private equity firm, Naxicap Capital Partners and others.

Ondura, own Onduline SAS, Alwitra Holding, CB SA and their subsidiaries, supplying roofing membranes and associated roofing solutions. The Onduline, cb (Corotop) and alwitra brands are all familiar in the UK roofing market.

Ondura is headquartered in France, with 14 manufacturing sites and a distribution network in 100 countries worldwide.

In the 12 months to 31 December 2021 Ondura had un-audited consolidated revenues of €424m with earnings before interest, taxes, depreciation, and amortization (EBITDA) of €63m, and Trading Profit of €55m. Gross assets as at 31 December 2020 were €387m.

Kingspan Acquisition

The total cost for the businesses will be €550m (debt free, cash free) payable in cash on completion. Signing of the share purchase agreement is subject to standard French procedures and regulatory clearances, and is expected to complete in the second half of 2022.  The existing Ondura management teams will be retained in the businesses.

The acquisition of Ondura is expected to increase Kingspan Group EBITDA by approximately 7% over one full year. The acquisition is aligned with Kingspan’s long-stated strategy to develop multiple technologies in roofing applications and will serve as the company’s global platform for advancing these solutions, it says.

In Kingspan’s annual report last week it showed increased profit and revenue in 2021 with “strong” underlying demand.

The company said it has started 2022 “well”, due to a strong order backlog at the end of 2021.

However, raw material prices remain at “elevated levels” with no indication of this changing significantly in the near future, the company said.

Kingspan Chief Executive Gene Murtagh said, “Despite a slower fourth quarter, with a large order backlog we are cautiously optimistic about the outlook for this year, whilst mindful of the high bar in comparison with last year’s performance.

“High energy costs and supply threats around the world are a catalyst for a focus on conservation measures, which is likely to accelerate the demand for lower energy solutions which we believe will be supportive of demand for our products.”

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