LONDON, UK: Kingspan Group plc, the global leader in high performance insulation and building envelope solutions, announced today that it has agreed to buy c.51% of the shares of Steico SE, the world leader in natural insulation and wood-based building envelope products, for EUR35 per share, with an option to buy a further c.10% of shares in the future.

Steico, based in Germany and listed on several German Stock Exchanges, has four large production sites in Poland and France, with additional capacity nearing completion. It had revenues of EUR445m and EBITDA of EUR90m in 2022.

The deal is expected to be earnings neutral initially, and will give Kingspan access to Steico’s suite of bio-based solutions, which complement its existing portfolio of insulation products. Kingspan will seek fair representation on Steico’s administrative board, and will retain the existing Steico executive management team.

The acquisition is subject to regulatory clearance, and is expected to close in early 2024. Steico will continue to maintain its listings on the German Stock Exchanges.

Gene Murtagh, Kingspan Chief Executive Officer, said: “The acquisition of a majority stake in Steico represents an exciting next step in our strategy to provide the full spectrum of insulation products. Its suite of wood-based building envelope solutions broadens our ability to enable our customers to meet their sustainability and energy performance needs.”

Udo Schramek, Steico Chief Executive Officer, said: “It has been a great honour to lead the team at Steico to become the pre-eminent global supplier of wood-based insulation. We are now entering the next phase of growth and are very enthusiastic about the collaboration opportunities Kingspan brings.”

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