US: Ireland's Kingspan, the building materials and insulation group, has purchased the building insulation division of US company Pactiv for US$82m. The deal is Kingspan's first foray into the residential market in the US, where it already has an industrial business.
Pactiv had sales of US$84m in the twelve months that ended on 30 June 2014 and recorded an operating profit of US$10m. 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 US$30m, according to Kingspan.
Gene Murtagh, Kingspan's CEO, said that the acquisition represents 'a new and exciting frontier' for the company's business in North America. "It is a tremendous opportunity to build upon the growing success of our existing insulated panel business throughout the region," he said.
