Kingspan agrees to sell Hamilton panel plant, gets approval for Vicwest takeover

OAKVILLE, Ont. – The federal Competition Bureau has cleared the way for Kingspan Group to buy Canadian building products company Vicwest on the condition that Kingspan sells a Vicwest plant in Hamilton that makes insulated metal panels.

Jeanne Pratt, a senior deputy commissioner with the bureau, says its review concluded that Kingspan’s acquisition of Vicwest would substantially reduce competition in the supply of insulated metal panels in Ontario.

But Pratt says Kingspan co-operated with the bureau in finding a solution to that concern.

Kingspan, based in Dublin, has operations in Ireland and the United Kingdom, mainland Europe, North America and the Asia-Pacific region.

In November, Kingspan reached a deal to acquire Vicwest (TSX:VIC) for $12.70 per share cash — about $224 million — and sell its Westeel division to Winnipeg-based Ag Growth (TSX:AFN) for about $210 million in cash.

Kingspan issued a brief statement Wednesday saying it will sell the Hamilton factory within an agreed upon time, which wasn’t disclosed in the announcement.

Ag Growth said the parties will work towards completion of the agreement but didn’t estimate when the deal will close.