Acquisition strengthens Kingspan’s push into converged power, cooling and containment solutions for the global data centre market.
Kingspan Group has announced an agreement to acquire 100% of BMC Manufacturing Group, a fast-growing Irish power management systems business serving the global data centre industry, in a deal valued at up to €900 million.
The acquisition underlines Kingspan’s ambition to expand its data centre offering and deepen its presence in one of the world’s fastest-growing infrastructure sectors.
“BMC Manufacturing’s advanced technology will mean that we are well-positioned to meet the accelerating global data centre demand”
BMC designs, engineers and manufactures low-voltage switchgear and critical power management solutions for data centres. The company supplies customers across the US, EMEA and APAC regions and operates from four facilities in Ireland, with plans to expand into a new manufacturing facility in the United States.
Powering up AI
The deal is the latest in a series of AI-related data infrastructure developments in the Irish economy. Earlier this week US manufacturer Vertiv confirmed it was creating 300 new AI infrastructure jobs in Letterkenny and Limerick engineering business H&MV revealed it had raised €750m backing to fuel its US expansion to capture AI and data centre infrastructure opportunities.
Kingspan said the acquisition is highly complementary to Advnsys’ existing Data Solutions business, enabling the delivery of a converged power, cooling and containment solution to customers and expanding the Group’s opportunities through its global sales network.
The initial consideration for the transaction is €850 million on a debt-free, cash-free basis, comprising €600 million in cash and €250 million in newly issued Kingspan shares. A further deferred consideration of up to €50 million may be payable subject to the achievement of significant profit targets.
BMC is forecasting revenue of approximately €280 million in 2026 and EBITDA of around €90 million. Kingspan said EBITDA is expected to reach approximately €180 million in 2027, supported by a strong pipeline of business.
The company said the transaction implies an enterprise value to EBITDA multiple of below 5x based on forecast 2027 earnings.
BMC’s management team will remain with the business and continue to lead its development under the Tate brand, bringing BMC’s technology capabilities to Tate’s wider customer base.
Gene Murtagh, Chief Executive Officer of Kingspan, said: “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.
“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.”
The acquisition is subject to regulatory approval and is expected to complete during the fourth quarter of 2026.
Brendan Meehan, Founder and Chairman of BMC Manufacturing, said: “Joining the Kingspan family marks an exciting new chapter for BMC Manufacturing. 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.”
Kingspan said the cash element of the deal will be funded through existing credit facilities and supported by its investment-grade balance sheet. The Group expects its net debt-to-EBITDA ratio to be approximately 1.9x at the end of 2026, reducing to around 1.1x by the end of 2027.
Top image: Kingspan CEO Gene Murtagh on stage at The Real Deal conference
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