Acquisitions

Kingspan seeks to evaluate and acquire businesses with strong product, technical, manufacturing or management capabilities that can be effectively integrated into Kingspan's existing business model. Historically, the Group has been active in acquiring companies that created value by expanding Kingspan's product range or market share in its key markets. Kingspan expects that it will continue to be acquisitive in the future, as it considers the optimal mix of products and operations to serve its high-potential markets.

The businesses that Kingspan targets for potential acquisition typically possess one or more of the following characteristics:

RNS - 22/08/2008 - Kingspan announces the acquisition of Metecno USA, ("Metecno")

Kingspan, the leading manufacturer of a range of sustainable products for the construction industry, is pleased to announce it has completed the acquisition of 100% of Metecno, Inc., a holding company for the Metecno businesses in the USA, from Metecno BV, a subsidiary of the Metecno Group, a global manufacturer of composite sandwich panels.

RNS - 09/05/2005 - Acquisition of Advanced Thermal Composites Ltd for £20 million

Kingspan, a major manufacturer of an integrated range of products for the construction industry, is pleased to announce it has acquired 100% of the shares of Advanced Thermal Composites Ltd ('ATC').

ATC is a manufacturer of composite sandwich panels based in Warrington, England and manufactures continuous PIR and discontinuous PU panels, which it supplies for use in, inter alia, cold storage and food preparation applications. The acquisition of ATC complements Kingspan's existing business in the UK.

RNS - Kingspan Group PLC ("Kingspan") announce acquisition of Century Homes ("Century")

Annual Report 2007

Century is Ireland's leading manufacturer of timber frame houses, operating from locations in Ireland and Britain. The acquisition forms part of Kingspan's ongoing drive to increase the scale and breadth of its product offering within the off-site construction sector in Britain & Ireland.

During the year the Group completed 7 acquisitions, the principal ones being Coldmatic (Canadian based manufacturer of insulated panels), Tate ASP Maxcess (Canadian based manufacturer of raised access floors), Atlas Tanks (Irish based environmental tank manufacturer) and Thermomax (UK based manufacturer of advanced solar thermal systems).
Tate ASP Maxcess and Atlas Tanks involved the acquisition of a 100% stake.

The goodwill arising on the above acquisitions relates primarily to identified synergies with existing businesses and growth potential. The initial assignment of fair value to identifiable net assets acquired has been performed on a provisional basis in respect of a number of business combinations disclosed above given the timing of these deals. Any amendments to these fair values and formal evaluation of intangible assets acquired, made during the subsequent reporting window (within the twelve month timeframe from the acquisition date imposed by IFRS 3) will be subject to disclosure in the 2008 Annual Report. The total adjustments processed to the fair values of business combinations completed during 2006 where those fair values were not readily or practicably determinable as at 31 December 2006 amounted to € 4,406,000.

A further €3,385,000 of costs were incurred in respect of these acquisitions and there was also a reduction of €5,746,000 in the consideration payable. The net result of these adjustments is that goodwill increased by €2,045,000.

2007 €‘000

The business combinations have reported the following post acquisition profits which have been consolidated into these financial statement

The revenue and profit of the Group for the financial year determined in accordance with IFRS as though the acquisition dates for all business combinations effected during the year had been the beginning of that year would be as follows:

As is the norm with Kingspan's development strategy, certain business combinations have been completed after the balance sheet date, none of which are material to the Group thereby not requiring disclosure either under IFRS 3, Business Combinations or IAS 10, Events after the Balance Sheet Date

Interim Statement Period ended 30 June 2008

On 22 August 2008, the Group acquired Metecno Inc., the second largest Insulated Panel and profile producer in the US, for a total consideration of $111m. Metecno operates out of 5 facilities across the US, and together with the Group's existing Canadian presence, gives

Kingspan unrivalled geographic reach and a market leading position in the North American Insulated Panel market. This is a key strategic move for the Group and provides exposure to a market that longer term will trend towards more efficient methods of construction. While composite panels have traditionally occupied only a very small position in that market, the combination of environmental and energy cost pressures, together with a market leading position, provides Kingspan with an excellent opportunity to grow penetration of its product range in the medium term.

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