Kent-based Keaveney Plant Hire Ltd has added a state-of-the-art Suction Excavator to its fleet, thanks to financing from Paragon Bank. The plant hire specialist, based in Ashford, secured £450,000 from Paragon’s SME Lending Construction team to acquire the new asset, helping it to meet escalating business demands and expand its
Market analysis by debt advisory specialists, Sirius Property Finance, has found that while the volume of non-domestic rateable properties in England has crept up over the last year, there has been a marginal decline in their total rateable value. Sirius Property Finance analysed data on non-domestic properties – those not
The owner of Wagamama has said it is targeting between 200 and 220 restaurants in the long-term, up from its current estate of around 160 UK sites. The Restaurant Group said that strong returns from regional restaurants has given it confidence to accelerate its expansion plans, with the aim of
The owners of Asda are reportedly considering a £500m sale of some of the supermarket retailer’s property portfolio in an effort to reduce debts. The billionaire Issa brothers, Mohsin and Zuber, with the backing of TDR Capital, are said to be in negotiations with Australian firm Macquarie Asset Management regarding
Global engineering, design, and advisory practice Buro Happold will continue its role as lead consultant for the Mayor of London’s Local Energy Accelerator (LEA) – a funding programme which supports the development and delivery of local energy projects across London – as it is extended to Spring 2024. A further £3 million
Notting Hill Genesis (NHG) has announced the appointment of energy and regeneration specialist, Equans, to undertake an upgrade and investment programme at the Paragon estate in Brentford. It means work can start on bringing 1,000 homes back into use between 2025 and 2026 and restoring a local community on the
Energy firms met today with Secretary of State Grant Shapps during Energy Week to strengthen the UK’s plans for energy security and economic growth. Energy Security Secretary Grant Shapps today hailed the “immense opportunities” available for companies and communities as the UK continues to invest in renewable and other clean
Civils & Lintels, the UK’s largest steel lintel distributor, has completed a major investment programme to increase its capacity and enhance its service levels to the UK residential sector. The business has committed more than £5 million to create four regional distribution hubs for the lintels division of the company
Private real estate and renewable energy investment company, Interland, has agreed a £66.4m investment property loan with Secure Trust Bank Real Estate Finance to refinance its portfolio of residential assets across Greater London. The new 5-year agreement sees Interland refinance an existing £42.2m loan with Secure Trust Bank with a
Kingspan Group plc, the global leader in high performance insulation and building envelope solutions, is pleased to announce that it has entered into an agreement with Schramek GmbH (“Schramek”) to acquire c.51% of the shares of Steico SE (“Steico”), with an option to acquire a further c.10% of shares in
Kent-based Keaveney Plant Hire Ltd has added a state-of-the-art Suction Excavator to its fleet, thanks to financing from Paragon Bank. The plant hire specialist, based in Ashford, secured £450,000 from Paragon’s SME Lending Construction team to acquire the new asset, helping it to meet escalating business demands and expand its service offering. The firm’s Managing Director, Andrew Keaveney, developed a strong rapport with Paragon’s SME Lending team having previously secured financing from the bank. Keaveney Plant Hire Ltd is a division of the wider family-run business founded in 2007, The Keaveney Group. It’s recognised as a key supplier in the industry and combines family values and innovative technology, resulting in a cost-effective service with strong client partnerships. The newly acquired ESE 6 RD RSP Suction Excavator is mounted on a Mercedes Benz Arocs 8x4x4 Chassis Cab with cutting-edge features, such as a fully hydraulic articulated hose carrier, and is the ideal solution for working at distances ranging from zero to six metres. Thanks to the support of Paragon’s Construction team, Keaveney Plant Hire Ltd can further commit to providing an array of equipment to its clients. Tracey Cronin, Business Development Manager in Paragon’s Construction team, led the deal on behalf of the bank. Commenting on the funding secured from Paragon, Andrew Keaveney said: “Thanks to the support from Paragon Bank’s SME Lending division we have secured the necessary financing to elevate our operations. The acquisition of the Suction Excavator enables us to meet the growing demand for this asset.” Commenting on the support provided to Keaveney Plant Hire Ltd, Tracey Cronin, Business Development Manager in Paragon’s Construction team, said: “We are thrilled to assist Keaveney Plant Hire Ltd in its journey of growth and fleet expansion. Our partnership withAndrew Keaveney andhis dedicated team has been further strengthened, and we take pride in continuing to provide financing solutions that drive its success.” Building, Design & Construction Magazine | The Choice of Industry Professionals
Market analysis by debt advisory specialists, Sirius Property Finance, has found that while the volume of non-domestic rateable properties in England has crept up over the last year, there has been a marginal decline in their total rateable value. Sirius Property Finance analysed data on non-domestic properties – those not used for living accommodations such as shops, offices and warehouses – looking at the rateable value of this commercial real estate in current market conditions. The rateable value is an estimate of what it could cost to rent a property for a year based on a set valuation date. The analysis shows that there are just over 2m non-domestic rateable properties located across England, with London home to the highest proportion (16%) with 319,300. This marks a marginal increase of 0.2% versus 2022, which may sound insignificant, but equates to an increase of 3,750 properties. In the current market, the rateable value estimated totals over £63.5bn, a marginal reduction of -0.1%, but again, one that equates to a drop of almost £77m. As a result, the average value per rateable property currently sits at £31,488 per year. Of the three primary non-domestic sectors, it’s the industrial sector that boasts the highest volume of commercial rateable properties (532,680), however, the retail sector sits top with a highest total rateable value of £15.9bn in 2023. This is despite both an annual reduction in the volume (-0.3%) and total value (-0.9%) of these properties when compared to last year. The office sector has also seen a year on year decline in both volumes (-1%) and total rateable value (-1%). In contrast, the number of industrial rateable properties is up 0.7% annually, with the total value of these properties also climbing by 1.1%. Managing Director of Sirius Property Finance, Nicholas Christofi, commented: “Overall, the rateable value of non-domestic properties across the nation has declined marginally over the last year, despite the challenging landscape facing the commercial sector. At the same time, volumes have also crept up, which suggests an underlying air of confidence within the commercial space. Of course, this marginal reduction in values still equates to a notable £77 million versus last year, which really demonstrates the sheer size of the sector in England. While retail remains the most valuable non-domestic core sector, it’s the industrial space that has gone against the wider grain to register an uplift in both volumes and rateable value.” Data tables Data tables and sources can be viewed online, here. Building, Design & Construction Magazine | The Choice of Industry Professionals
The owner of Wagamama has said it is targeting between 200 and 220 restaurants in the long-term, up from its current estate of around 160 UK sites. The Restaurant Group said that strong returns from regional restaurants has given it confidence to accelerate its expansion plans, with the aim of now opening between eight to 10 sites from the 2024 financial year onwards. This comes as the group, which also owns the Frankie & Benny’s chain and the Brunning & Price pub group, releases its interim results for the first half of the 2023 financial year. The group said it was also aiming to open between one to three “high quality” Brunning & Price pubs from the 2024 financial year onwards. During the 26 weeks ending 2 July 2023, the group’s total revenue increased by 10% to £467.4m, up from £423.4m the previous year. Whilst the group’s Wagamama, pubs, and concessions businesses had all seen year-on-year increases in like-for-like sales of 7%, 8%, and 29% respectively, its leisure business saw a fall in sales of 3%. The Restaurant Group said that despite more resilient trading in the third quarter, it has continued to rationalise its leisure estate. It now expects to reduce the size of this business to around 76 sites by the end of the financial year, down from 116 sites previous year. This would mean that the group’s two-year rationalisation programme would be delivered in 12 months. The group will hope to achieve this through: the exercising of lease expiries or break clauses on 14 sites; the sale of eight freehold sites; the conversion of three sites to Wagamama restaurants by the end of the 2024 financial year; and the acceleration of the disposal of between 12 and 17 sites through agreements with landlords or alternative tenants. The Restaurant Group expects to exit the vast majority of lease obligations on the circa 40 closed sites by the end of the 2024 financial year. Building, Design & Construction Magazine | The Choice of Industry Professionals
The owners of Asda are reportedly considering a £500m sale of some of the supermarket retailer’s property portfolio in an effort to reduce debts. The billionaire Issa brothers, Mohsin and Zuber, with the backing of TDR Capital, are said to be in negotiations with Australian firm Macquarie Asset Management regarding a sale. The deal would see Macquarie purchase the ground rent leases of around 50 Asda stores, with a clause allowing the supermarket retailer to reassume control of the sites at the end of the 50-year term. Asda would then be able to pay lower rents at these stores while raising higher amounts of equity. The Issa brothers acquired the Asda estate from Walmart in 2021 in a deal worth £6.8bn, however some £2.75bn of debt was included in the transaction. In March, it was reported that the billionaire brothers were eyeing the sale-and-leaseback of the entire Asda estate, worth £8.6bn. The supermarket retailer then disposed of 25 stores to American investor Realty Income in a sale-and-leaseback deal worth £650m. Asda recently reported an increase in sales during the second quarter, which the supermarket said reflected the “strength” of its customer proposition. Building, Design & Construction Magazine | The Choice of Industry Professionals
Global engineering, design, and advisory practice Buro Happold will continue its role as lead consultant for the Mayor of London’s Local Energy Accelerator (LEA) – a funding programme which supports the development and delivery of local energy projects across London – as it is extended to Spring 2024. A further £3 million of funding has been made available from the Mayor of London to support organisations to deliver clean and flexible local energy projects and help to meet London’s ambition of being net zero carbon by 2030. Buro Happold will work closely with partners Turner & Townsend and communications consultancy Camargue to continue the work done to date to decarbonise London and tackle the climate emergency. Through the continued programme, funded support and expertise will be provided to organisations including local authorities, government departments, NHS Trusts, and housing associations to develop projects such as district heat networks and technologies, including heat pumps and solar PV. Buro Happold will continue to lead on the delivery of the programme, working closely with beneficiary organisations across London and providing technical expertise to support the development of projects. Their extensive energy consulting work will help guide organisations across London to benefit from low carbon, low-cost energy solutions that are suited to the challenges faced because of climate change. Turner & Townsend will continue to provide programme management services for the GLA and support the Local Energy Accelerator’s beneficiaries. As well as supporting the application process, the firm will provide guidance and oversight throughout the projects to help ensure effective delivery. Camargue will continue to provide communications and engagement support, including promoting the programme to potential beneficiaries across London and driving applications for funding. Shirley Rodrigues, Deputy Mayor for Environment and Energy said: “The Mayor is committed to making London net zero by 2030 and as we see the growing impacts of climate change on our world and our city we know we must accelerate our work on this target. We all need to work together and make the bold decisions now. “I’m pleased that the Mayor is providing further funding to support the delivery and development of local energy projects and that Buro Happold will continue their excellent work as lead consultant for the Mayor’s Local Energy Accelerator. This programme has already helped hundreds of London based organisations to reduce their carbon footprint and work towards achieving net zero in 2030. Working together we can build a better London for everyone – a safer, fairer, greener and more prosperous city for all Londoners.” Alasdair Young, Director of Energy at Buro Happold said: “We are delighted to be able to continue our work, along with our partners, to support organisations across London developing clean and locally generated energy projects. The Mayor has set ambitious targets to decarbonise London. Scaling up local net-zero carbon energy systems requires a step change in the pace of deployment. It is an exciting time, but there are huge challenges for councils looking to transition to low carbon energy. However, with the right guidance and leadership, the opportunities to reduce energy, reduce cost and cut carbon are real. We have found that many organisations are committed to reducing their emissions but often struggle to access specialist, independent expertise. Buro Happold is relishing the opportunity to lead in this critical area for London to deliver on important net zero targets and are delighted to be supporting the GLA in providing access to skills which will help to tackle this huge challenge.” Matt Sutton, Director at Camargue, said: “It’s brilliant to see the progress that has been made over the last few years by organisations across London to decarbonise the city, and to have worked closely with the GLA to support this work through the Local Energy Accelerator programme. “Over the coming months we’ll be helping the GLA to promote the extended programme and drive applications for funding – supporting the delivery of more essential clean energy projects. We’ll also be telling the story of the success of the programme to date and fostering collaboration between beneficiaries to continue the move towards net zero over the coming years.” Richard McWilliams, Director of Sustainability at Turner & Townsend, said: “Decarbonising the UK’s energy and heat networks is central to achieving our net zero ambitions, and strengthening national energy security. This award demonstrates our ability to drive complex programmes and it’s fantastic to be able to continue our work in supporting the delivery of essential local energy projects. “Our long-standing relationship with the GLA and strong track record of working in partnership with local authorities makes us well placed to support the energy transition across the capital.” Buro Happold is leading the design and deployment of innovative net-zero carbon heat and renewable energy systems across the UK. This ranges from river, lake and mine water source heat pumps to district energy schemes which recycle waste heat from sewage to provide hot water and heating to homes and workplaces. Their specialists work with clients to tackle technical and commercial challenges. They prepare investment cases and high-performance designs which enable clients to decarbonise the built environment across scale – buildings, campuses, and cities. Buro Happold is committed to developing and sharing knowledge of this critical issue across engineering and construction. They were among the first signatories to the World Green Building Council Net Zero Carbon Buildings Declaration and have a seat on the steering group for the UK Green Building Council net zero carbon buildings framework definition task group. Building, Design & Construction Magazine | The Choice of Industry Professionals
Notting Hill Genesis (NHG) has announced the appointment of energy and regeneration specialist, Equans, to undertake an upgrade and investment programme at the Paragon estate in Brentford. It means work can start on bringing 1,000 homes back into use between 2025 and 2026 and restoring a local community on the estate. Those who previously lived at Paragon were successfully supported to find new homes and move on with their lives, following the difficult decision to ask them all to leave the estate in October 2020; due to Notting Hill Genesis’ concern that the buildings did not meet adequate levels of safety. John Hughes, group director of development and sales and deputy chief executive of NHG said: “The safety of our residents is always our first priority and, as such, we felt moving residents from Paragon was the best course if action and has enabled us to assess the full scope of the proposed works. We know how much of an upheaval this was for everyone, so we established dedicated teams to work with every household to find a permanent solution. “The subsequent thorough investigations give us a great deal of confidence that we have a robust plan and we are looking forward to working with Equans and our expert team of surveyors to deliver our remediation and reinvestment plan. We look forward to people once again calling the Paragon estate home and to it being a thriving west London neighbourhood once more.” Equans will carry out remedial works across all six blocks, enhancing fire safety measures, by installing much thicker insulation and a new façade to dramatically improve the comfort and efficiency of the homes. Of the £72m investment, £36m will be spent on works to bring building services and finishes up to a modern standard, including the installation of sprinkler systems, upgraded mechanical, engineering, and public health systems, and completely refitted homes. The work also includes a complete internal refurbishment to all areas, including new lighting, ceilings, furniture, flooring, and landscaping. Dan Germann, regional managing director for Equans added: “Following months of significant, intrusive investigations and comprehensive planning and testing, we are delighted to have been appointed to undertake the remedial and reinvestment works at the Paragon estate development. “Equans is very much looking forward to continuing the proactive and collaborative working relationships which have developed over the past number of months with Notting Hill Genesis and their appointed professional team. We are committed to ensuring that this significant project provides both safe and modern accommodation for all residents at Paragon estate.” Building, Design & Construction Magazine | The Choice of Industry Professionals
Energy firms met today with Secretary of State Grant Shapps during Energy Week to strengthen the UK’s plans for energy security and economic growth. Energy Security Secretary Grant Shapps today hailed the “immense opportunities” available for companies and communities as the UK continues to invest in renewable and other clean technologies and strengthen national energy security. At an industry roundtable in Downing Street this week energy firms across renewables, oil and gas and nuclear all outlined projects worth as much as up to £100 billion, to be built across the UK over the next decade. Government and industry also agreed on the importance of working together across the entire energy sector to: The Secretary of State also outlined the government’s new powers to protect UK energy supplies. Speaking after the event Energy Security Secretary Grant Shapps said: We stand at a crucial point in the UK’s energy history: achieving our goals depends on continued close collaboration with the leaders in the industry. This was the shared consensus at today’s industry roundtable, which I had the privilege of convening, where we discussed the path to strengthen the UK’s energy security and boost economic growth. The consensus among energy firms was clear – there are immense opportunities ahead and these can only be seized if the UK government, industry and regulators work together across the sector to accelerate investment into renewables, bring down bills and deliver on net zero. The investment projects discussed today will not only of safeguard hundreds of thousands of skilled jobs across the country but ensure a resilient and sustainable energy future for the Britain. Attendee comments Keith Anderson, CEO, ScottishPower said: We welcomed the opportunity to hear the Secretary of State’s continued commitment to the UK’s world leading position on tackling climate change and delivering net zero, while growing the economy. As one of the biggest renewables and electricity network investors, ScottishPower is helping drive that growth, creating over 1,000 job in 12 months alone and we look forward to continuing that for decades to come. Tom Glover, RWE’s UK Country Chair said of today’s meeting: With an ambition to invest up to £15 billion in the UK electricity market by 2030, it was good to discuss the issues facing the industry at the roundtable today with Grant Shapps, the Secretary of State for Energy Security and Net Zero, and very reassuring to hear him emphasise the government’s commitment to net zero targets and the UK’s carbon budgets. We emphasised the need for more and regular engagement between government and industry, the continued commitment to net zero and the requirement for interim targets for the electricity sector. We also welcomed the announcement of the latest Track 2 CCS transport and storage projects, and encouraged the government to go further and faster with other CCS projects and CO2 shipping around the UK. David Whitehouse, Offshore Energies UK said: I welcomed the opportunity to represent Offshore Energies UK’s membership of over 400 firms at Number 10 today. These companies’ investments in innovative projects across the sector, from oil and gas to offshore wind, carbon capture and hydrogen are the key getting to net zero and beyond. Today’s energy summit re-iterated the UK’s commitment to achieving net zero, and recognised the key role that domestic oil and gas production and carbon capture and storage will play in that journey. Through ongoing collaboration and pragmatic policy, I am convinced that the UK can unlock the private investment necessary for an energy future that provides security, affordability, creates highly skilled jobs, and tackles climate change. The offshore energy sector’s proven track record over the last 5 decades shows what we can achieve when working collaboratively. Jon Butterworth, CEO of National Gas, said: Gas is at the heart of the UK’s energy security. There were 260 days in 2022 where gas provided over 30% of the nation’s electricity, ensuring the lights were kept on, whilst also keeping our citizens warm and industries fuelled – protecting thousands of jobs and half a million businesses. We welcomed today’s discussion with the Secretary of State and industry leaders, and we will continue to work with the government to strengthen the resilience of our energy sector. Emma Pinchbeck, CEO Energy UK, said: Our industry’s united view is that achieving net zero and energy security go hand in hand, and we welcome the Secretary of State’s renewed commitment to that. The best and quickest way to tackle those challenges, and keep bills affordable for customers, is to rapidly expand our own sources of cheap, clean power alongside reducing demand. Making more homes energy efficient is a no-brainer, and the potential that greater flexibility offers for consumers and the wider energy system will bring down costs for us all. We also need to focus on the immediate issue of support for those customers facing a struggle this winter to afford energy bills that remain much higher than 18 months ago. Enabling all this means having the right environment to attract the necessary investment in face of increasing global competition, developing supply chains and workforce skills and tackling issues around the planning system and grid connections that can hold up the rapid progress we all want to see. Our industry is fully committed to working with government to address all these because we all see the huge opportunities on offer for our economy, our environment and our customers. Ruth Herbert, Chief Executive of the Carbon Capture and Storage Association, said: Today’s meeting was an important opportunity to discuss with energy industry partners how we can collectively deliver secure, affordable, decarbonised energy, with CCUS critical to achieving this and driving future economic growth. We welcome the government’s CCUS announcements this week, which deliver momentum to the industry and a decarbonisation pathway to two important industrial regions. But we still need clarity on the timeline of support if we are to successfully store 20-30Mt of CO2 by 2030 in line with government’s net zero ambitions, and ensure we are not left
Civils & Lintels, the UK’s largest steel lintel distributor, has completed a major investment programme to increase its capacity and enhance its service levels to the UK residential sector. The business has committed more than £5 million to create four regional distribution hubs for the lintels division of the company – including new facilities in Nottinghamshire and the South East. A new facility has been set up at Kirkby-in-Ashfield and a further site in Erith converted solely to a Lintels platform alongside further investment in sites at Bolton and Westbury in Wiltshire with all sites offering an impressive range of stock from all key manufacturers. Civils & Lintels works with its many regional and national housebuilder customers to develop tailored delivery schedules and can also offer help and advice on the selection of the best lintels for each development. The lintels hubs can also offer plot-banded deliveries if requested. In addition to the technical knowledge that the teams have, Civils & Lintels can also offer bespoke fabrication services through its sister company: Harvey Steel Lintels. So, if the customers need something unique or extra heavy duty, Civils & Lintels can also manufacture it for them. This fresh investment ensures that the business always has £30m plus of stock available to meet any needs customers may have.* As a specialist lintels supplier, the Civils & Lintels teams are focussed on delivering not only excellent customer service, but the broadest depth of products from all key manufacturers so can assure our customers that the products will be delivered on time and in full. Phil Sheldon, Head of Residential from Civils & Lintels, said: “This investment reflects the ambition that Civils & Lintels has as a business in the UK housing sector. “We are already the largest distributor of steel lintels in the country and this investment will not only mean that we can continue to offer the best products, but we can also be even more efficient and flexible with our service proposition.” Civils & Lintels is dedicated to servicing the construction industry and are proud partners of all the major manufacturers including Birtley, Catnic, IG, Keystone & Naylor. To view all Civils & Lintels products see https://www.civilsandlintels.co.uk/lintels. Building, Design & Construction Magazine | The Choice of Industry Professionals
Private real estate and renewable energy investment company, Interland, has agreed a £66.4m investment property loan with Secure Trust Bank Real Estate Finance to refinance its portfolio of residential assets across Greater London. The new 5-year agreement sees Interland refinance an existing £42.2m loan with Secure Trust Bank with a £24.2m uplift to cover additional assets previously financed by various other lenders. The new loan represents a loan-to-value (LTV) of 52%. With the original investment property loan due for refinancing next year, the early refinancing by Interland allows the business to lower its cost of debt whilst fixing the rate across all properties to maximise business stability and avoid the need to manage multiple refinances over the next two years. Oleg Vorobeichik, Group Managing Director at Interland Group, said: “We are delighted to increase the depth and breadth of our relationship with Secure Trust Bank. STB were able to move at pace, working closely with our teams to tailor the facility to the company’s needs. The refinancing with STB forms part of Interland’s strategy to re-capitalise its debt through portfolio funding, thereby allowing the group to reduce its cost of debt and achieve the flexibility required to balance market volatility and the Group’s operational needs.” Founded in 1985, Interland is a private real estate and renewable energy investment group which owns, develops, and operates assets in the United Kingdom, Netherlands and Belgium. Interland’s wide-ranging portfolio includes Private Rented Sector (PRS), social and council housing, student accommodations, hotels, youth hostels, offices as well as investments into energy storage through Atlantic Green, where it holds 25%. Andy Clutterbuck, Regional Head for Midlands and South at Secure Trust Bank Real Estate Finance, added: “We’re extremely pleased to be able to extend the successful partnership we’ve enjoyed with Interland since agreeing our first loan back in 2017.” Richard Nowell, Senior Relationship Director at Secure Trust Bank Real Estate Finance, who will be working closely with Interland Group over the course of the loan, added: “As a bank which places a great deal of emphasis on the relationships we build with a range of ambitious property investors and developers, this refinancing deal with Interland underlines just how effectively we can work together to agree a deal which acts as a springboard for future growth.” For more information on the investment property loans offered by Secure Trust Bank Real Estate Finance, click here. Building, Design & Construction Magazine | The Choice of Industry Professionals
Kingspan Group plc, the global leader in high performance insulation and building envelope solutions, is pleased to announce that it has entered into an agreement with Schramek GmbH (“Schramek”) to acquire c.51% of the shares of Steico SE (“Steico”), with an option to acquire a further c.10% of shares in Steico in the future. Steico is the world leader in natural insulation and wood-based building envelope products, based in Germany and listed on the unofficial markets of several German Stock Exchanges. It has a very well invested asset base, with four large production sites comprising 27 lines situated in Poland and France, including additional capacity nearing completion with up to EUR200m revenue headroom. Steico had audited operating revenues of EUR445m in the 12 months to 31 December 2022 and EBITDA of EUR90m in the same period. As at June 2023, Steico guided 2023 revenues of c.EUR378m at an EBIT margin of 8% – 10% (FY22 14.6%). As at 31 December 2022, Steico had gross assets of EUR509m. The initial consideration for the shares will be EUR35 per share, plus potential deferred consideration of up to a further EUR35 per share contingent on achievement of specified thresholds with a material uplift in profitability. The initial consideration of approximately EUR251.4m will be satisfied on completion, with 25% of the consideration potentially being exchanged for new shares in Kingspan (subject to Kingspan share price at completion). The consideration payable under the put and call option to acquire Schramek’s remaining c. 10% in Steico is for a capped amount based on a multiple of future earnings. The acquisition is expected to be earnings neutral initially, based on Kingspan consensus EPS for 2023 and Steico guidance for 2023. In addition to Steico’s existing ambitious growth plans we anticipate significant long term leverage via the Kingspan sales channels. The existing Steico executive management team will be retained in the business, and will continue to manage and develop the business. Upon closing, Kingspan will seek fair representation on Steico’s administrative board. The acquisition is conditional on regulatory clearance, and is expected to complete in early 2024. Following completion, Steico will continue to maintain its listings on the German Stock Exchanges. Gene Murtagh, Kingspan Chief Executive Officer, commented: “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. 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.” Udo Schramek, Steico Chief Executive Officer, stated: “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, in both the existing Steico range and across the Kingspan portfolio and geographies. I am excited about the future for Steico and about being invested in the future growth of both companies.” Building, Design & Construction Magazine | The Choice of Industry Professionals
