The family of former small business activist Eoghan Hynes could receive over €35 million if building materials group Kingspan buys their company.
Publicly-quoted Kingspan confirmed yesterday that it was in talks to buy Mr Hynes's Hytherm and Xtratherm businesses for €85 million. However, it warned that the negotiations may not result in a deal.
Hytherm and Xtratherm make polystyrene-based insulation and adhesives mainly for the building industries in Ireland and Britain.
Based in Navan, Co Meath, the combined group consists of 12 companies.
It also has facilities in Cork and in Runcorn in northern England.
The companies are held through Leanort Ltd, a company in which members of Mr Hynes's family own a 42 per cent interest. If the group sells for €85 million, that stake would be valued at €35.7 million.
Mr Hynes is a director of the company, but returns show that he transferred his interests in Leanort to members of his family - Eoghan J Hynes, Tara Hynes and Samantha Hynes.
Anthony, Darragh, David, John J and Thelma Hynes are also named as shareholders. John Keegan, Donal Downey, Paul Carty and Mark Byrne also hold various-sized stakes in the company.
During a period in the 1990s, Mr Hynes was chairman of the Irish Small and Medium-Sized Enterprise association (ISME), the vocal business lobby group. He is no longer involved at that level.
Leanort's most recent accounts show that the group performed strongly in 2004.
Sales grew 60 per cent to €51.8 million from €32.5 million in 2003. Operating profits in 2004 were almost €5 million, compared with €1.1 million a year earlier. Profits before tax grew six times to €4.3 million from €705,800.
The company paid shareholders a total dividend of €635,320, and the profit transferred to reserves for the year was €1.87 million, against €121,000 in 2003.
The balance sheet was similarly strong, with total assets at the end of the year of €21.4 million, compared with €18.2 million 12 months earlier.
The directors' report states that turnover increased due to growing demand for some of its products, as a result of new building regulations.
"This market is expanding and turnover is expected to show continued growth over the next year," the report added.
Kingspan is based in Cavan and listed in Dublin and London. Its share price grew strongly in recent days as investors bought into the company on the back of rumours that it was about to make a significant purchase.
