BUILDING materials manufacturer Kingspan may have paid in the region of 20m to acquire two UK timber-frame house-building firms.
Publicly-listed Kingspan is understood to have bought Pace Timber Systems and Potton, both based in the midlands. A UK-based industry source told the Sunday Tribune last week that the two acquisitions are part of Kingspan's previouslystated ambition to capture a greater share of the British timber-frame housing market. One analyst who wished to remain anonymous, said the two deals are "decent boltons".
Potton recorded a turnover in 2005 of £18.2m ( 26.4m) and an operating profit of over £1.7m ( 2.47m). At the end of 2005 it had net assets of £4.3m ( 6.25m). Accounts for Pace Timber show it recorded an operating loss of £841,000 ( 1.18m) in 2004, compared to a profit of £158,000 in 2003.
In 2005, Pace Timber's Optima Homes off-site building system was selected by a consortium including Swedish retailer Ikea to build affordable homes across the UK.
Pace expected 500 of the homes to be built between 2005 and 2008. The houses were nicknamed "flat pack" homes by the British media. At the time, Pace said the deal was worth £25m to it and its partner in the Optima system, a firm of architects.
In 2005 Kingspan paid almost 100m to acquire Monaghan-based Century Homes, Ireland's largest off-site manufacturer of timber-frame houses.
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