Kingspan tendered Recticel for 700 million euros

On April 16, Kingspan, an Irish insulating material company, said it had offered Recticel, Belgium, 700 million euros (605 million) for the acquisition of its insulation and foam sector.

The company has also reached an agreement with a third party that if the acquisition continues, it will sell the soft bubble business.

This transaction will strengthen Kingspen's control over the European insulation market, where Recticel's subsidiaries have production facilities in Belgium, France, the United Kingdom and Slovenia. Recticel, a Brussels-based company, said in a statement that the board would analyse the proposal and update the market based on its fiduciary responsibilities.

Recticel added that Kingspen did not provide him with any details about third party identity or the price the company paid for its soft bubble business.

Recticel accounted for 41% of the 1 billion 500 million euro sales in 2017, and 18% of insulation products. The rest consists of bedding and car parts.

However, the profit margin of the thermal insulation device is slightly higher than that of the flexible foam, with an annual profit margin of 33% in 2017 compared to 31%. Kingspan accounts for about a fifth of its sales in the UK, although this dependence has been declining as it diversifies further into Europe. Over the past two years, Kingspen has spent more than 1 billion euros on acquisitions, mainly in North America, Central America and South America. The acquisition contributed 17% to Irish company's sales growth last year, with a record annual revenue of 4.4 billion euros. Recent acquisitions, including Syneria Group in Spain and Balex Metal, a Polish-based manufacturer of insulation products, helped boost continental European contributions, accounting for almost half of all sales.