Building materials group Kingspan is to acquire Co Meath-based data centre provider BMC Manufacturing in a deal worth up to €900m.
BMC Manufacturing designs, manufactures and installs critical power systems for data centres and employs more than 350 people across Dublin and Meath.
Kingspan is to pay an initial €850m for BMC Manufacturing, which will be funded with €600m in cash and the issuing of €250m worth of new shares.
A further €50m will be paid if certain profit targets are met.
BMC is forecast to have revenues of €280m this year, with its earnings before interest, tax, depreciation and amortisation forecast to reach €90m.
Kingspan said the earnings figure is anticipated to double in 2027.
It said its business would be “highly complementary” to its Advnsys subsidiary, which designs and builds data centre facilities.
Last week Kingspan raised its full-year profit forecast by 18% due to strong demand for its data centre offerings.
It also paused its previously-announced €650m share buyback programme in order to appraise potential opportunities.
“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. “BMC Manufacturing’s advanced technology, combined with Advnsys’ deep partnerships with multiple hyper-scalers, will mean that we are well-positioned to meet the accelerating global data centre demand.”
“Joining the Kingspan family marks an exciting new chapter for BMC Manufacturing,” said the company’s founder and chairman Brendan Meehan. “We have built a strong business with an outstanding team, and this combination provides the ideal platform to accelerate the next phase of our global growth.”
