Kingspan has made a 700 million euro ($789.95 million) offer for the insulation and flexible foams units of Belgium’s Recticel, it said on Tuesday.
The company has also struck a deal with a third party to sell on the flexible foams businesses if the acquisition goes ahead, it said.
The deal would tighten Kingspan’s grip on the European insulation market, where Recticel’s unit has manufacturing facilities in Belgium, France, Britain and Slovenia.
Recticel’s board will analyze the proposal in line with its fiduciary duty and update the market, the Brussels-based company said in a statement.
It added that Kingspan had not provided it with any details regarding the identity of the third party or what price that company would pay for its flexible foams business.
The flexible foams unit made up 41 percent of Recticel’s 1.5 billion euros of annual sales in 2017, with the insulation unit contributing 18 percent. The remainder was made up from its bedding and automotive units.