Insulation industry news from Global Insulation

France: Ireland-based Kingspan has closed its acquisition of Ondura Group. The group consists of light roofing producer Onduline, membranes producer CB and waterproofing systems producer Alwitra. It operates plants in four European countries, as well as Brazil, Malaysia, Turkey and the US. Law firm Clifford Chance, a long-term partner of Kingspan, advised the insulation group through the deal.

On 27 September 2022, Kingspan acquired waterproofing membranes producer Derbigum in neighbouring Belgium. Derbigum has recycled 30,000t of bitumen in its operations to date.

Hungary: Masterplast says that it has signed an option contract to acquire the outstanding 76% stake of expanded polystyrene (EPS) producer T-Cell Plasztik. T-Cell Plasztik holds a 10% market share in Hungarian polystyrene production, and recorded revenues of US$7.91m in 2021.

Masterplast first acquired a 24% stake in T-Cell Plasztik in June 2019.

US: Global cement producer Holcim has successfully acquired leading US independent spray foam producer SES Foam. SES Foam has a track record of double-digit growth and expects to record sales revenues of US$200m in 2022, according to Holcim. The group says that the producer stands out for its value-added services to contractors, including onsite technical instruction, business consulting, branding and lead generation support.

Global head of solutions and products Jamie Gentoso said “I warmly welcome all SES employees into the Holcim family. With SES’ leadership in thermal insulation, we are expanding our range of innovative systems for sustainable buildings, from roofing to insulation, to enhance buildings’ energy-efficiency. We look forward to entering our next era of growth together.”

US: Owens Corning has announced its conclusion of a deal to buy polyurethane (PU) foam insulation producer Natural Polymers. The companies say that Natural Polymers president and CEO Benjamin Brown will take on an innovation leadership role at Owens Corning following the completion of the transaction.

US: Switzerland-based cement manufacturer Holcim has agreed to buy SES Foam for an undisclosed sum. The company manufactures spray foam insulation and roofing products. It had forecast net sales of US$200m in 2022. The transaction follows recent acquisitions Holcim in the light building materials market such as Firestone Building Products and Malarkey.

Jamie Gentoso, Head Solutions & Products at Holcim said, “This is another exciting step in the expansion of Solutions & Products, advancing our ‘Strategy 2025 – Accelerating Green Growth’. SES has a proven track record of growth and innovation in thermal insulation with a focus on more sustainable solutions, making them highly complementary to our roofing and insulation business.”

SES Foam was founded in 2009 and is based at Spring in Texas. Its SucraSeal product was the first sucrose-based spray foam insulation to be certified by the US Department of Agriculture for its high bio-based content.

UK: Norway-based BEWI has acquired an additional 51% stake in Jablite Group for around Euro12m making it the sole owner. It previously purchased a 49% stake in the expanded polystyrene (EPS) insulation products producer and civil engineering provider in June 2020. At the time Jablite initiated a restructuring programme due the negative effects of the coronavirus pandemic and resulting lockdowns. As part of the programme it also closed two of its facilities.

The current management of Jablite, including managing director Richard Lee and finance director John Cooper, will continue in their roles going forward. Rik Dobbelaere, a previous chief executive officer (CEO) of Synbra Holding and BEWi Synbra Group, and director of the board of BEWI ASA, has been director of the board of Jablite since BEWI’s acquisition of the 49% stake in 2020.

“We are very pleased to now be able to include Jablite fully to our team. The company has shown an impressive development the last two years, and we look forward to further strengthen our market position in the UK together going forward,” said Christian Bekken, CEO of BEWI. He added that Jablite’s operations would complement the UK-based operations of Jackon well and that synergies were expected by combining the two companies once the acquisition Jackon transaction is completed. BEWI started to buy the Norway-based supplier of insulation and construction systems in late 2021.

BEWI is an international provider of packaging, components and insulation products.

Poland: Major cement producer Holcim has entered into an agreement to acquire waterproofing, adhesives, polystyrene products and plaster producer Izolbet. Izolbet employs 170 people and operates four production plants in Budzyń, Gostynin, Kleszczów and Chmielów, with most of its business in the high-growth repair and refurbishment market. Holcim says that the new acquisition will help to strengthen its footprint in the renovation, thermal insulation and finishing segment.

Europe, Middle East and Africa region head Miljan Gutovic said “Speciality building solutions have been a key focus for expanding Solutions & Products in Europe, notably with the recent acquisitions of PRB Group in France and PTB-Compaktuna in Belgium. I’m excited to be welcoming all of Izolbet’s employees into the Holcim family, to unleash our next chapter of growth together.

Romania: Knauf Insulation has completed its acquisition of Gecsat. Business World Magazine News has reported that Gecsat operates a glass wool insulation plant in Tarnaveni, Mures County. In 2020, it recorded revenues of Euro6.6m. Knauf Insulation’s Romanian portfolio includes glass wool, basalt mineral wool and wood fibreboard operations.

Knauf Group management committee member and Insulation Europe, Middle East and Asia chief executive officer Dominique Bossan said "The acquisition of the Romanian plant will support Knauf Insulation's growth goals and provide additional capacity to meet the growing demand for our insulation solutions in the region.”

France: Saint-Gobain’s sales grew by 15.8% year-on-year to Euro44.2bn in 2021 from Euro38.1bn in 2020. Its earnings before taxation, interest, depreciation and amortisation (EBTIDA) rose by 41% to Euro6.20bn from Euro4.42bn. Sales and earnings increased by 4% and 27% compared to 2019 levels before the coronavirus pandemic started. Sales revenue and operation income was reported up in all geographical regions.

“The records achieved in 2021 confirm that the group has entered a new post-transformation trajectory in terms of performance: market-beating sales growth, record earnings and margins, a high level of free cash flow generation that has more than doubled compared to previous years, and strong value creation for our shareholders thanks to strict capital allocation and the determined execution of our portfolio optimisation,” said Benoit Bazin, the chief executive officer of Saint-Gobain.

The group completed or signed 37 acquisitions in 2021, including Chryso and GCP Applied Technologies (GCP), marking its rapid expansion into the construction chemicals market. In India the group announced it was buying stone wool producer Rockwool India in December 2021. The acquisition is expected to be completed by the end of the first quarter of 2022.

Saint-Gobain also reported that an ongoing investigation by the French competition authority into the building insulation productions market has reached the appeal stage. The group says that allegations of anti-competitive behaviour from 2001 to 2013 were dismissed in 2021, but that competitor insulation producer Actis appealed the decision and Saint-Gobain issued incidental appeals. The next hearing is expected by the end of 2022.

In relation to the ongoing public inquiry into the Grenfell Tower fire that took place in London, UK in 2017 the group said, “The extent to which Celotex may incur civil or criminal liability in connection with the production, marketing, supply or use of its products is currently unclear and Celotex and Saint-Gobain Construction Products UK are currently unable to make a reliable estimate of their potential liability in this respect.” Public hearings are anticipated to continue into mid-2022 with a final report to follow thereafter.

Slovakia: Ireland-based Kingspan has stopped an attempt to buy Trimo due to difficulties obtaining approval from the European Commission. Regulatory approval failed to arrive before a deadline set in August 2020 when Kingspan and Polish private equity fund Innova Capital signed a contract for the sale, according to the Finance newspaper and the Slovenian Press Agency. During its investigation the commission expressed concerns that the acquisition could reduce competition and lead to price rises in several countries. It added that the acquisition would have created the largest supplier of mineral wool sandwich panels in Europe.

Trimo was acquired by Innova Capital in 2016. It produces mineral wool sandwich panels and is reportedly the second largest seller of the products in Europe with a 10% market share. It operates production plants in Slovenia and Serbia and most sells panels in Europe. Innova Capital is expected to select a new buyer for Trimo.