Insulation industry news from Global Insulation

Slovakia: Ireland-based Kingspan has stopped an attempt to buy Trimo due to difficulties obtaining approval from the European Commission. Regulatory approval failed to arrive before a deadline set in August 2020 when Kingspan and Polish private equity fund Innova Capital signed a contract for the sale, according to the Finance newspaper and the Slovenian Press Agency. During its investigation the commission expressed concerns that the acquisition could reduce competition and lead to price rises in several countries. It added that the acquisition would have created the largest supplier of mineral wool sandwich panels in Europe.

Trimo was acquired by Innova Capital in 2016. It produces mineral wool sandwich panels and is reportedly the second largest seller of the products in Europe with a 10% market share. It operates production plants in Slovenia and Serbia and most sells panels in Europe. Innova Capital is expected to select a new buyer for Trimo.

Slovenia: Kingspan has submitted the highest binding bid for 97% of its troubled Slovenian peer Trimo, but its creditor banks are reluctant to sell it, according to local media.

According to unofficial information of a local daily newspaper, Dnevnik, the sale adviser and Trimo's major shareholder, state-controlled lender Nova Ljubljanska banka (NLB), is in favour of the sale, but the other owners believe that the offered price of Euro25 – 30m is too low. Trimo's two other bidders, Metroll Australia and Innova Capital, have made less generous offers. All three bidders have already been invited to improve their bids.

"The sale process is ongoing and currently we are in the stage of negotiations with potential buyers," said NLB. It added that it has not received any other instructions by the owners on how to proceed. "If the owners would like to stop the sale and this is supported by the majority, of course they can revoke the decisions already taken."

Trimo was 90.81% acquired by a group of local banks under a debt-for-equity swap in April 2014. Most of the local banks believe that the sale should be postponed for a few years when the ongoing restructuring takes effect and Trimo could be sold for a higher price, according to Dnevnik. They also want a buyer with long-term plans. Moreover, the Central Bank has put the group in the list of companies worth restructuring.

NLB's efforts to sell the company are supported mainly by banks controlled by foreign parents. NLB would get between Euro5 – 6m for its 20% stake in Trimo, considering the offered price.