Insulation industry news from Global Insulation

US: Ireland-based Kingspan has acquired Minnesota Diversified Products, the producer of the DiversiFoam range of expanded polystyrene (EPS) and extruded polystyrene (XPS) foam and polyisocyanurate (PIR) foam billets. The group says that DiversiFoam will join Kingspan Insulation’s North American division and become a key proponent of its 10-year sustainability programme, Planet Passionate. It plans to expand the company’s Rockford EPS foam plastic recycling plant. Minnesota Diversified Products is committed to recycling 99% of production waste.

Managing Director Doug Crawford said "DiversiFoam and Kingspan are a natural fit from a geographic, technical and cultural perspective. The combination of these two outstanding businesses, coupled with Kingspan’s commitment to further investment will provide our collective customer base, our employees and our business partners with significant value. I am thrilled to welcome the DiversiFoam team into the Kingspan family.”

Romania: France-based Saint-Gobain has completed its acquisition of adhesives and construction chemicals producer Duraviz for an undisclosed sum.

The group said that the acquisition will enable it to expand its interior and exterior finishing product range. Saint-Gobain employs 1800 people at 12 sites in Romania.

Ireland: Xtratherm has agreed to acquire Ballytherm’s Ireland and UK operations. The businesses include one polyisocyanurate (PIR) insulation plant in Ballyconnell, County Cavan and a new production unit that the company is preparing to open at Ross-on-Wye in the UK. The expansion is intended to expand the operations of Unilin Insulation, the owner of Xtratherm, in the UK and Ireland.

Barry Rafferty, the managing director of Xtratherm, said “The acquisition of Ballytherm, along with additional investment in new technologies will allow Xtratherm to deliver on operational excellence, new product innovations and improved service that will contribute towards a stronger and more sustainable future for our employees, customers and the construction sector in the UK and Ireland.” At present Xtratherm operates two foam insulation plants in Ireland and the UK respectively.

The proposed acquisition will be subject to the approval of competition authorities in Ireland. The transaction is expected to complete by the end of 2021.

Romania: France-based Saint-Gobain has acquired Duraziv, a producer of adhesives and other construction chemicals. The group said that the purchase would allow it to expand its range of interior and exterior finishing solutions. It also hopes the move will drive an improvement in the energy efficiency of buildings in Romania thanks to external thermal insulation solutions (ETICS) based on locally-produced stone wool and mortars. This latest addition follows the recent acquisition of Russia-based Adhesive Scientific and Production Company, a producer of polyurethane (PUR) and epoxy products.

Poland: Belgium-based Recticel has signed a preliminary agreement with Poland-based insulation company Gór-Stal. Under the agreement, the producer will acquire the company’s polyisocyanurate (PIR) insulation business for Euro30.0m. The company employs 66 people at its Bochnia plant in Lesser Poland Province. In 2020 it generated net sales Euro16.7m and earnings before interest, taxation, depreciation and amortisation (EBITDA) of Euro2.50m. Its capacity utilisation rate was 40%.

Chief executive officer Olivier Chapelle said, “The acquisition of the Gór-Stal PIR-based insulation board activities marks an important step in the development of our insulation business. This acquisition perfectly fits our ambition to further expand in the growing thermal insulation markets of Central and Eastern Europe. It meets three fundamental prerequisites: a state-of-the-art asset, a perfect geographical complementarily, and a focus on high performance PIR insulation solutions. We look forward to welcoming our new and highly skilled colleagues from Gór-Stal.”

Recticel expect to close the deal in July 2021.

US: Stepan has acquired Invista’s aromatic polyester polyol business and associated assets. The business produces polyols for use in polyurethane (PUR) and polyisocyanurate (PIR) foam insulation. It operates two production sites, at Wilmington, North Carolina, US and at Vlissingen in Zeeland in the Netherlands. Its annual sales are US$100m. Stepan plans to finance the acquisition with cash on hand and expects it to be accretive to its 2021 earnings before interest, taxation, depreciation and amortisation (EBITDA) margins.

Chair and chief executive officer Quinn Stepan said, "We are excited to add Invista's polyester polyol capabilities to Stepan. This acquisition expands our manufacturing capability in both the US and Europe, enhances our business continuity capabilities for the market and supports the growth of our global rigid polyol business. We expect that Invista's available spare capacity, plus debottlenecking opportunities in both plants, will allow Stepan to support market growth in a capital efficient way. We believe the long-term prospects for rigid polyol use in insulation remain strong as energy conservation efforts and more stringent building codes should continue to drive market growth. Additionally, we believe the acquired technology will accelerate our product leadership initiatives, drive manufacturing efficiencies and output, and create increased value for the overall market. We look forward to providing the highest level of service to our new customers and are excited to add the new employees and the two new sites to our global polyester polyol manufacturing network."

US: LafargeHolcim has signed an agreement to buy Firestone Building Products from Bridgestone Americas for US$3.4bn. The company said that the new subsidiary recorded estimated net sales of US$1.8bn and earnings before interest, taxation, depreciation and amortisation (EBITDA) of US$270m. The group will finance the deal through cash and debt. It said that the acquisition is a milestone in its transformation to become the ‘global leader in innovative and sustainable building solutions.’

Chief Executive Officer Jan Jenisch said, “I am excited to be entering the highly attractive roofing business. With Firestone Building Products we are strengthening our biggest market, the US, while also building a global growth and innovation platform for the company. Today’s milestone is a strategic leap on our journey to become the global leader in innovative and sustainable building solutions to build a world that works for people and the planet. I have great respect for the high-calibre leadership and expertise of the Firestone Building Products’ team and look forward to welcoming them into the LafargeHolcim family.”

US: Switzerland-based LafargeHolcim has said that it is in talks with Bridgestone about its possible acquisition of the latter’s energy-saving roofing systems specialist subsidiary Firestone Building Products. Bloomberg News has reported that talks are in their advanced stages and may conclude before 9 January 2020.

Netherlands: France-based Saint-Gobain has announced its acquisition of internal finishing and exterior insulation systems specialist Strikolith for an undisclosed price. Strikolith employs 50 people at its Raamsdonksveer, North Brabant plant and generated sales of Euro19.5m in 2019.

Saint-Gobain said, “The complementarity of Strikolith with Saint-Gobain's existing businesses enhances the group's solution offering and in particular allows it to strengthen its offering in External Thermal Insulation Composite Systems (ETICS) and in construction chemicals in the Netherlands, reinforcing Saint-Gobain's leading position in energy-efficient renovation in Europe.”

US: Installed Building Products (IBP) recorded a net income of US$41.3m in the first half of 2020, up by 49% year-on-year from US$27.8m in the first half of 2019. Sales were US$791m, up by 11% from US$714m. Chair and chief executive officer (CEO) Jeff Edwards said, “These record results demonstrate the success of our on-going geographic, end-market, and end-product diversification strategies, the benefits of our pricing strategies, and the hard work and dedication of our employees.”

The installer of insulation and complementary building products has also recently acquired Charleston Insulation and Foam and Savannah Insulation and Foam from Energy One America. Both companies provide foam, glass fibre and air barrier insulation installation services. Edwards said, “With total annual revenue of approximately US$22m, these branches expand our presence in two attractive markets. In addition, each branch provides multiple installation services, and end market diversification that fits extremely well within our overall growth strategy.”