Insulation industry news from Global Insulation

Europe/Spain: The European Commission has approved, under the European Union (EU) merger regulation, the acquisition of Spanish insulation producer URSA by Germany’s Xella. The commission concluded that the acquisition would raise no competition concerns because of the limited overlaps between the activities of the companies. The deal was first announced in August 2017 and it is expected to be completed by the end of 2017.

Sweden: Denmark’s Rockwool has purchased 180,000m² of land in the eastern Swedish municipality of Eskilstuna. The acquisition is intended for future growth and to allow the mineral wool producer to meet any potential rise in demand for its products. At present the company supplies the Swedish market with products manufactured at plants in Denmark and Norway.

Brazil: Kingspan has acquired a 51% stake of Isoeste Construtivos Isotérmicos (Isoeste). Isoeste, an insulated panel manufacturer, operates from four production sites with approximately 630 employees. No amount for the transaction has been disclosed.

"We are delighted to create this partnership with the founders of Isoeste, the number one player in Brazil's insulated panels market. Together with our recent investments in Colombia and Mexico, this acquisition firmly places Kingspan in a market leading position across Latin America, with a strong platform for further expansion in the region," said Gene Murtagh, Kingspan’s chief executive officer (CEO).

France: Icynene Europe, the European division of spray foam insulation manufacturer Icynene, has purchased Isolat France, a polyurethane insulation distributor. The acquisition will allow Icynene to sell light density spray foam insulation, obtain a Conformité Européene (CE) marking for spray foam insulation and to establish a presence in France.

“The acquisition reinforces Icynene’s commitment to growth within the European market with direct sales to contractors. Operating across two dozen European countries, Icynene Europe will now have a comprehensive product mix of open- and closed-cell spray foam insulation products that we will manufacture in Europe,” said Bertrand Lauret, Managing Director of Icynene Europe, Africa and the Middle East.

US: Owens Cornings has completed its purchase of Pittsburgh Corning for around US$560m. Originally the insulation producer expected the transaction and its regulatory approval to be completed in the third quarter of 2017. Pittsburgh Corning produces cellular glass insulation products, including Foamglas, and it has operations in the US, Belgium, the Czech Republic, and China.

US: Owens Corning has signed an agreement to acquire Pittsburgh Corning, a producer of cellular glass insulation systems for commercial and industrial markets, for around US$560m in cash, on a cash free and debt free basis. The transaction, which is subject to regulatory approvals, is anticipated to close in the third quarter of 2017.

“The acquisition of Pittsburgh Corning will further expand Owens Corning’s commercial and industrial product offering and grow our presence in Europe and Asia,” said Julian Francis, president of Owens Corning’s Insulation Business. “The addition of Pittsburgh Corning will build on our core glass technologies and accelerates our progress in making Owens Corning the leading provider of insulation solutions with fiberglass, foam, mineral fibre, and cellular glass.”

Pittsburgh Corning produces cellular glass insulation products for commercial and residential buildings and energy and industrial applications. Its productions include Foamglas. The company also produces a range of complementary accessory products including sealants, adhesives, and jacketing. Pittsburgh Corning employs over 1100 people in 17 countries. It operates facilities in the US, Belgium, Czech Republic and China. It reported sales of over US$240m in 2016.

Norway: Saint-Gobain has entered into talks with the owners and shareholders of Glava to buy their shares, with the support of the company’s management. Prior to this negotiation, Saint-Gobain already owned 17% of the capital of Glava, which has manufactured products under an Isover license since 1960. The acquisition will be subject to the scrutiny of the relevant competition bodies.

Insulation producer Glava operates two mineral wool plants at Askim near Oslo, and at Stjørdal near Trondheim. It also has workshops producing expanded polystyrene and ceilings. Glava supplies a comprehensive range of insulating products and accessories to its customers. The company reported sales of over Euro140m in 2016.

US: Owens Corning has signed an agreement to acquire Pittsburgh Corning, a producer of cellular glass insulation systems for commercial and industrial markets. Upon closing, the company will pay approximately US$560m in cash, on a cash free and debt free basis. The transaction, which is subject to regulatory approvals, is anticipated to close in the third quarter of 2017.

“The acquisition of Pittsburgh Corning will further expand Owens Corning’s commercial and industrial product offering and grow our presence in Europe and Asia,” said Julian Francis, president of Owens Corning’s Insulation Business. He added that the purchase will build Owen Corning’s core glass technologies.

Pittsburgh Corning employs over 1100 people in 17 countries. It operates facilities in the US, Belgium, Czechia and China. It produces Foamglas cellular glass, an insulation used for low-temperature industrial applications and in commercial buildings. The company also offers a line of accessory products. Pittsburgh Corning reported sales of over US$240m in 2016.

UK: Texas’ Huntsman Corporation has completed its acquisition of IFS Chemicals, a manufacturer of methylene diphenyl diisocyanate (MDI) based systems. The purchase price has not been disclosed.

“With its highly experienced team and loyal customer base, IFS provides us with excellent access to the UK’s growing downstream MDI systems market. It will serve as a strategic platform to expand our business and consolidate our position as a market leader. The acquisition represents the latest step in our plan to strengthen our differentiated downstream capabilities and we now have more than 25 facilities worldwide, reflecting our confidence in the long-term growth prospects for MDI-based urethanes, ” said Tony Hankins, president of Huntsman’s Polyurethanes division.

Germany: Saint-Gobain has purchased the Augustdorf glass plant in North Rhine-Westphalian from Teuto-Glasveredelung. The unit produces thermal insulating glass products as well as sound-insulating glass and other glass products. The purchase is planned to be completed in March 2017, subject to approval by the government.