Insulation industry news from Global Insulation

Romania: Hirsch Servo has bought the insulating material division of Arcon. The deal includes two expanded polystyrene (EPS) insulation production plants in Bucharest and Sfantu Gheorghe. No price for the transaction has been released. Hirsch Servo will become the second largest insulation producer in the country, following its purchase of the Energoterom insulation plant at Timisoara in July 2016.

UK: Sergei Kolesnikov, president of construction materials producer TekhnoNicol, will acquire Superglass. Kolesnikov has made an offer of US$11.49m for the Scottish glass mineral wool insulation producer via his company Inflection based in Cyprus. The board of directors of Superglass unilaterally recommended approving the purchase proposal. The shareholders who own 63.5% in Superglass have already submitted irrevocable obligations to sell their stakes.

"This transaction and the commercial partnership between Superglass and TekhnoNicol, is a strategic opportunity for all parties, providing TekhnoNicol, with a presence in the UK and Irish insulation markets. We are impressed with Superglass' management team and look forward to working with them," said Sergei Kolesnikov, the sole shareholder of Inflection.

Russia: Saint-Gobain has increased its share in the Tambov-based heat insulation producer Isoroc from 74.9% to 100%. The plant's capacity exceeds 100,000t/yr. The French company obtained permission from the Federal Antimonopoly Service to increase its share of Isoroc in late 2015.

Poland: Ineos Enterprises has agreed in principle to sell Ineos Styrenics, its expandable polystyrene (EPS) business, to Synthos for Euro80m. Completion of the transaction is likely to occur in the second half of 2016, subject to customary regulatory approvals.

Ineos Styrenics produces EPS for the building, construction and packaging industries at manufacturing sites at Wingles and Ribécourt in Northern France and Breda in the Netherlands. The three production sites are supported by its technology Centre in Breda. Customer Service, Logistics and Finance groups are also located in Breda. The business employs around 250 people who will transfer as part of this deal.

“The aim of the acquisition will be to provide the highest quality EPS to ensure that EPS remain the insulation material of choice for our customers.” said Tomasz Kalwat, CEO of Synthos.

Synthos S.A. is one of the largest manufacturers of chemical raw materials in Poland. The company is the first European manufacturer of emulsion rubbers and is a leading manufacturer of polystyrene for foaming applications. The Company is traded on the Polish stock exchange with its headquarters located in Oświęcim

Germany: Evonik Industries is acquiring the Performance Materials Division of Air Products and Chemicals for US$3.8bn. The products it is acquiring from Air Products include ingredients for insulation foams, sun lotion and paint as well as additives to harden aircraft and marine coatings. The transaction is intended to be completed by the end of 2016 subject to approval from relevant competition authorities.

“Evonik is already one of the leading producers of specialty & coating additives. Air Products’ Specialty & Coating Additives business perfectly complements this fast-growing segment. With this acquisition we are expanding our portfolio with precisely the right markets, products and innovations and continuing to invest in our growth and profitability,” said Klaus Engel, chief executive officer of Evonik Industries.

Air Products’ specialty and coating additives business will be integrated into the Nutrition & Care and Resource Efficiency segments of Evonik. The acquisition will also give Evonik a greater presence in North America, diversifying its markets outside of Europe. It also expects to generate savings of up to US$80m/year from the deal by 2020.

US: Installed Building Products, an installer of insulation and complementary building products, has purchased Alpine Insulation based in Sheboygan, Wisconsin with five operating locations throughout the state. Alpine provides installation services to the residential and commercial sectors.

"Alpine represents a compelling opportunity for us to enhance our presence in Wisconsin through a complementary business with strong local brands, exceptional customer loyalty and a strong management team. This acquisition brings our total acquired revenue in 2016 to approximately US$44m, as we remain focused on selectively acquiring market-leading installers in highly attractive markets," said Jeff Edwards, chairman and chief executive officer of Installed Building Products.

Russia: Saint-Gobain has obtained the Federal Antimonopoly Service's permission to purchase 74.9% of the voting shares in the heat insulation materials producer Isoroc, based in Tambov Oblast. When the sale completes the French company will own 100% of Isoroc.

US: 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.

US: 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.

UK/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.