Kingspan Chief Executive Officer Gene Murtagh.

Kingspan acquire majority stake in German company

Acquisition an “exciting” step in Kingspan's strategy

A Kingscourt business has announced the acquisition of a majority stake in a German-based ecological construction products company.

Kingspan Group plc has entered into an agreement with Schramek GmbH to acquire approximately 51% of the shares of Steico SE.

The arrangement includes an option to acquire a further circa 10% of shares in Steico in the future.

The German company has four large production sites situated in Poland and France and audited operating revenues of €445m last year.

The initial consideration for the shares will be €35 per share, with the potential of up to a further €35 per share if specified thresholds including a material uplift in profitability are achieved.

The existing Steico executive management team will be retained in the business and will continue to manage and develop the business. Upon closing the deal, Kingspan will seek fair representation on Steico’s administrative board.

The acquisition is expected to be completed in early 2024. Following completion, Steico will continue to maintain its listings on the German Stock Exchanges.

Kingspan Chief Executive Officer Gene Murtagh said the acquisition is an “exciting” step in their strategy to provide a “full spectrum” of insulation products.

“It's suite of wood-based building envelope solutions broadens our ability to enable our customers to meet their sustainability and energy performance needs,” he said.

“Kingspan’s global routes to market, paired with our drive to innovate and widen the applications of Steico’s current technologies, are key to our plans to bring Steico bio-based solutions to the next level.”

Steico Chief Executive Officer Udo Schramek said they are “very enthusiastic” about the collaboration opportunities with Kingspan.

“I am excited about the future for Steico and about being invested in the future growth of both companies.”