Building materials group Kingspan announced it will acquire Co Meath-based data centre provider BMC Manufacturing in a transaction valued at up to €900m, according to company statements released on the deal.
Transaction Terms and Financial Structure
Kingspan will pay an initial €850m for BMC Manufacturing, according to the acquisition announcement. The initial payment breaks down into €600m in cash and the issuing of €250m worth of new shares. A further €50m is tied to specific profit targets and will be paid if those goals are met.
BMC Manufacturing is forecast to generate revenues of €280m this year, with earnings before interest, tax, depreciation and amortisation forecast to reach €90m, according to Kingspan’s financial disclosures. Kingspan stated that these earnings figures are anticipated to double by 2027.
Operational Fit and Market Strategy
BMC Manufacturing designs, manufactures and installs critical power systems for data centres and employs more than 350 people across operations in Dublin and Meath. According to Kingspan, the target business is “highly complementary” to its Advnsys subsidiary, which designs and builds data centre facilities.
“We are delighted to announce this acquisition as part of our stated strategy to evolve our data offering towards fully converged power, cooling and containment solutions,” said Kingspan CEO Gene Murtagh. Murtagh added that BMC Manufacturing’s advanced technology, combined with Advnsys’ deep partnerships with multiple hyper-scalers, positions the group well to meet accelerating global demand.
Brendan Meehan, founder and chairman of BMC Manufacturing, also commented on the transaction. “Joining the Kingspan family marks an exciting new chapter for BMC Manufacturing,” Meehan said, noting that the combination provides an ideal platform to accelerate the next phase of global growth.
Did You Know?
Hyper-scale data centres require massive, continuous power supplies and sophisticated cooling systems.
Frequently Asked Questions
How much is Kingspan paying for BMC Manufacturing?
Kingspan is paying an initial €850m, consisting of €600m in cash and €250m in new shares, with an additional €50m contingent on profit targets.
How many people does BMC Manufacturing employ?
The company employs more than 350 people across its facilities in Dublin and Meath, according to corporate disclosures.
What does BMC Manufacturing do?
BMC Manufacturing designs, manufactures and installs critical power systems specifically for data centres.
What are BMC Manufacturing’s projected earnings?
The company forecasts earnings before interest, tax, depreciation and amortisation of €90m this year on revenues of €280m, with earnings expected to double by 2027.
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