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Wed April 17 2024

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Kingspan buys US insulation business

18 Aug 14 Kingspan Group has agreed to buy the US building insulation division of Pactiv.

The division produces a range of XPS insulation products under the GreenGuard brand, which it supplies throughout the USA from its manufacturing base in Virginia. The business had sales of US$84m (£50m) for the year to June 2014 and recorded an operating profit of US$10m in the period.

The enterprise value is US$82m, of which US$72m is payable in cash on completion plus US$10m of working capital. Gross assets being acquired are valued at US$30m. The agreement is subject to local approval of licence and permit transfers.

The acquisition will be funded from Kingspan's existing cash resources.

Kingspan CEO Gene Murtagh said: "This investment represents a new and exciting frontier for our Insulation business in North America, giving us particular exposure to the residential sector.  It is a tremendous opportunity for Kingspan to build upon the growing success of our existing Insulated Panel business throughout the region, and at a time when North America's focus on energy efficiency and security is at an all-time high."

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