Insulation industry news from Global Insulation
Installed Building Products buys Biofoam
09 December 2015US: Insulation installer Installed Building Products, Inc. has acquired North Carolina's BioFoam, an installer of spray foam insulation to residential customers. Terms of the deal were not disclosed. Installed Building Products said that the acquisition further expands its presence in the strong North Carolina housing market.
Distribution International acquires E.J. Bartells
02 December 2015US: Distribution International Inc, a leading distributor and fabricator in the mechanical insulation market, has acquired Washington-based E.J. Bartells, a supplier of mechanical and industrial insulation, fabrication, refractory and heating, ventilation and air conditioning (HVAC) products throughout the Pacific Northwest and Western states.
"With the acquisition of E.J. Bartells, we have significantly expanded our North American, coast-to-coast footprint into Alaska, Colorado, Montana, North Dakota, Oregon, Utah and Washington with the addition of the premier insulation distributor in the Pacific Northwest," said Celeste Mastin, CEO of Distribution International.
"Providing the best solutions to our customers has always been the focus at E.J. Bartells. The additional products and resources that will be available to our customers through DI will allow us to be even more competitive in meeting our customers' needs," said Brian Farnsworth, President of E.J. Bartells.
Charterhouse to sell Armacell for Euro960m
01 December 2015UK/Germany: UK-based private equity firm Charterhouse Capital Partners LLP has agreed to divest Armacell International SA in a deal that values the German insulation materials firm at Euro960m, according to Reuters. Charterhouse, which paid Euro520m for Armacell in 2013, will sell it to private equity funds managed by US Blackstone Group LP. The transaction is scheduled to close in the first quarter of 2016. Armacell reported net sales of Euro452m in 2014.
Installed Building Products acquires Sierra Insulation Contractors, Eco-Tect Insulation and Overhead Door Company of Burlington
11 November 2015US: Installed Building Products has acquired California's Sierra Insulation Contractors Inc and Eco-Tect Insulation Inc, both installers of fiberglass and cellulose insulation. It has also acquired Overhead Door Company of Burlington, Inc, which installs and servicing garage doors and provides fulfillment services for windows, interior and exterior doors and molding. The terms of the deals were not disclosed.
US LBM expands its footprint in the southeast of the US
03 November 2015US: US LBM has further bolstered its presence in the southeast of the US with the acquisition of Building Supply Association, headquartered in Powder Springs, Georgia. BSA is a provider of exterior building products that was founded in 2007 by Michael Langston and Tim Bice. Langston, Bice and Beau Vineyard will remain in place as operational leaders, together with the rest of the executive team.
"BSA is excited to join the US LBM team," said Langston, CEO and President of Building Supply Association. "This new partnership allows us to continue to invest in operations and enhance customer service. The opportunity for growth for our employees, customers and vendor partners is extraordinary."
BSA specialises in roofing, siding and windows, serving residential contractors in the new home construction and remodelling industry throughout Georgia, Alabama, Tennessee and Louisiana.
"Building Supply Association is a great addition to the US LBM family," said L T Gibson, President and CEO of US LBM. "This enables us to strategically serve the Atlanta area specialty contractor with exterior building supplies from BSA, while simultaneously providing gypsum products through Rosen Materials. BSA's unique business model and proprietary management systems have propelled them to top of their market. We are eager to partner with their associates and look forward to future opportunities together in the southeast."
Coemac completes sale of insulation division to KKR
23 September 2015Spain: Coemac, which was previously known as Uralita SA, has completed the sale of its insulation division to financial creditors led by KKR, an American multinational private equity company. Financial creditors acquired 90% of URSA Insulation Holding BV, while Coemac kept a 10% stake, according to Reuters.
USI acquires Smith Insulation
14 September 2015US: USI, a national construction services provider of installed insulation and related services to builders, contractors and homeowners, has announced the acquisition of Smith Insulation, a Louisburg, North Carolina-based full-line insulation services contractor.
Founded in 1979 by Timothy Smith, family-run Smith Insulation has shown steady growth. The company employs approximately 35 personnel and serves the Raleigh, Durham and Roanoke Rapids markets. After closing, Smith will become branch manager and Duane Smith will maintain his current role as production manager.
In addition to the North Carolina markets served by Smith Insulation, USI has an existing branch serving western North Carolina and parts of Virginia. "We are excited how this acquisition further increases our presence in North Carolina," said Bill Varner, president and CEO of USI. "Bringing Smith's expertise, valued people and assets to USI is a significant opportunity for us. We expect a smooth transition and enhanced value for both our current and future customers."
"Joining forces with USI provides us with a whole new level of resources. USI shares our values of teamwork, trust and integrity that are so crucial in a relationship-driven industry. Our combined best practices and focus on service leaves me very optimistic about the future," said Timothy Smith.
EC opens investigation into Mondi’s acquisition of parts of Walki's packaging division
08 September 2015Europe: The European Commission (EC) has opened an in-depth investigation to assess whether the proposed acquisition by Mondi of two industrial packaging plants currently owned by Walki is in line with the EU Merger Regulation.
Mondi is a vertically integrated packaging and paper manufacturer that operates plants across Europe that manufacture extrusion coating products, such as those used for insulation production. The plants Mondi intends to buy from Walki also manufacture extrusion coating products. The EC has concerns that the removal of a key competitor may lead to less choice and higher prices for customers. The EC now has 90 working days, until 18 January 2016, to investigate whether these initial concerns are confirmed. The opening of an in-depth investigation does not prejudge the outcome of the investigation.
"The proposed merger could remove a key competitor for several types of packaging material. These are used in everyday items such as food packaging. I am concerned that the merger would lead to higher prices and less choice for these companies' clients and that the price increases could ultimately be passed on to consumers," said commissioner Margrethe Vestager, who is in charge of competition policy.
The EC's initial investigation has shown that the proposed acquisition of Walki's plants may remove a major competitive constraint on Mondi. Remaining competitors would have considerably lower production capacity than the merged entity and may not be able to match its product offering or proximity to key customers. The EC has concerns that these competitors may be unable to exert sufficient competitive constraint on the behaviour of the merged entity. This risks leading to a reduction of choice for customers and potentially to price increases for the products concerned.
Installed Building Products acquires Eastern Contractor Services and Parker Insulation and Building Products
11 August 2015US: Installed Building Products (IBP) has acquired Eastern Contractor Services based in New Jersey, which also operates as Parker Insulation and Building Products in Nederland, Texas, according to Dow Jones.
Eastern is a well-established company with locations in Flanders and Tuckerton, New Jersey, with a primary focus on fibreglass and spray foam insulation installations. Parker's product offerings include fibreglass and spray foam insulation as well as garage doors and other complementary products, in the south-eastern Texas market. Both Eastern and Parker focus on new single-family and multi-family residential construction end markets.
"We are pleased to announce our sixth acquisition of 2015 with trailing twelve month sales of approximately US$23m," said Jeff Edwards, chairman and CEO. "We have created a compelling acquisition platform and these established branch locations will deepen our presence in New Jersey, the New York metropolitan area and Texas. This acquisition brings our total acquired revenue in 2015 to approximately US$85m as we continue to pursue excellent acquisition opportunities in our target markets. We remain confident in our ability to execute on our growth strategy of utilising a disciplined approach to valuations and pricing."
Thermon acquires Industrial Process Insulators
06 August 2015US: Engineered thermal solution providers Thermon Group Holdings Inc has announced that one of its wholly-owned, indirect subsidiaries, Thermon, has acquired 100% of the equity interests of Industrial Process Insulators Inc (IPI) for US$21.75m, effective from 31 July 2015, according to Dow Jones.
IPI is an insulation contractor serving the refining, petrochemical, power and energy, marine and pulp and paper industries in the US, with a significant presence in the Texas and Louisiana Gulf Coast region. For the unaudited 12 month period that ended on 30 June 2015, IPI generated around a revenue of around US$22m. The IPI management team, led by Darrell Kunk and Brian Kunk, will continue to operate the business following the closing of the transaction.
"For over 15 years, IPI has been delivering high quality, responsive and, most importantly, safe, thermal insulation solutions to its industrial customers in the Gulf Coast region, including as a subcontractor of Thermon. We believe that IPI is an ideal complement to Thermon's existing installation services offering and will enhance our ability to execute turnkey heat tracing solutions. We expect the acquisition of IPI to enhance our ability to sell our core heat tracing products and grow our installed base. The acquisition is consistent with our strategy of pursuing organic and inorganic growth opportunities within and adjacent to our core thermal solutions business," said Rodney Bingham, president and CEO of Thermon. "We have known and worked with Darrell and Brian Kunk since the early 1990s and are pleased that they have agreed to multi-year employment agreements with Thermon. We look forward to welcoming IPI employees into the Thermon family."
"We have a great deal of respect for the Thermon organisation given the long track record of involvement between our two companies. We are excited to be partnering with Thermon and look forward to continued success," said Darrell Kunk, CEO of IPI.