Insulation industry news from Global Insulation

UK: Gloucester-based Advanced Insulation, which manufactures technical coatings and specialised passive fire protection and thermal insulation materials, has acquired Nottinghamshire-based Covertherm Limited, a manufacturer of insulation jackets. Covertherm's range of bespoke thermal insulation jacket and cover solutions will complement Advanced Insulation's range of flexible fire protection jackets.

"At a time when many manufacturers are looking abroad for low-cost production solutions, we're looking to reverse that trend. This acquisition will provide a UK manufacturing base for our ContraFlex range of passive fire insulation jackets, which will now be produced by Covertherm for the UK and export markets," said Advanced Insulation's managing director Andrew Bennion. "It is also an opportunity for Covertherm's own portfolio to be introduced to Advanced Insulation's other jacket manufacturing bases and we expect the company to grow significantly over the next 12 months."

The new UK manufacturing facility adds to already established production plants in the UAE, Kazakhstan and South Korea and will provide increased production capacity that will help to cope with the increasing demand for ContraFlex products.

Saudi Arabia: Knauf Exeed Insulation has won a contract to provide insulation to reduce the noise levels at Saudi Arabia's Grand Mosque as it undergoes extension.

"We are proud to be part of this historic project. The Grand Mosque is the main attraction for over 16 million pilgrims who enter Makkah each year. Our challenge is to provide noise reduction for the worshippers using the most sustainable eco-friendly insulation materials," said Daniele Cerutti, general manager of Knauf Exeed Insulation. "The consultants and the contractors opted for KB blanket insulation, a lightweight blanket of glasswool bonded with Ecose technology. In line with sustainable practices, Ecose uses natural and more sustainable organic materials than the non-renewable, phenol-formaldehyde or acrylic based resins traditionally used."

Spain: Uralita has appointed Javier Gonzalez as its new CEO after former CEO Javier Serratosa stepped down as a result of a debt refinancing agreement.

The refinancing contract granted private equity company KKR Fund control over the majority of the capital of Uralita's insulation subsidiary Ursa, which generated approximately 70% of the company's consolidated revenue in 2014. Serratosa, who continues to maintain a stake in Uralita, will thus assume the presidency of Ursa, in which Uralita will continue to hold a 10% stake. Uralita additionally reinforced its executive team through the appointment of Gonzalo Serratosa as vice president.

Ireland/Canada: Kingspan has obtained approval for the acquisition of Vicwest Building Products. The Irish insulation, building fabric and solar-integrated building envelopes company said that it has reached a consent agreement with the Canadian Competition Bureau, which requires the disposal of Kingspan's insulated metal panel facility at Hamilton, Ontario following the completion of the transaction.

In November 2014 Kingspan announced that it was buying the building products division of Vicwest Inc for US$136m in cash, inclusive of debt and reorganisation costs. The total estimated consideration payable is US$307m, of which Kingspan will fund US$126m and AGI will fund US$181m. The transaction is expected to complete imminently.

US: Installed Building Products Inc (IBP), which produces and installs insulation and complementary building products, has announced its results for the first quarter of 2015, which ended on 31 March 2015.

For the first quarter of 2015, net revenue grew by 22.7% year-on-year to US$130m. On a same branch basis, net revenue improved by 14% from the prior year quarter, with approximately half of the growth attributable to an increase in the number of completed jobs and the remainder through price gains and a more favourable customer and product mix. Gross profit improved by 29.2% to US$34.1m and gross margin expanded to 26.3% from 24.9% in the same period of 2014. Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by 78.9% year-on-year to US$7.6m, largely due to higher gross profit. Operating income improved to US$3m from US$0.9m in the prior year quarter. Adjusted net income from continuing operations was US$1.4m compared to US$0.1m in the same period of 2014. Selling, general and administrative expenses as a percentage of net revenue was stable at 23.4% compared to the same period of 2014, primarily due to higher net revenues that partially offset additional costs associated with being a public company and personnel costs to support growth.

"We continue to effectively execute our growth strategy, producing solid increases in net revenue, same branch sales and profitability," said Jeff Edwards, chairman and CEO. "In the first quarter 2015, our branches continued to exhibit growth trends above the rate of improvement in US residential construction and we further benefitted from our local leadership across our national network of locations. We remained focused on actively managing our costs to achieve another quarter of improved profitability while we further expanded our operations. Since the beginning of 2015, we have significantly expanded our geographic reach with the addition of market-leading insulation installers. We are especially pleased with the addition of BDI, which further strengthens our presence in the western US. As we move forward in 2015, we expect our branches to continue to perform well in their local markets and we are firmly positioned to capitalise on improving residential end markets. Additionally, we remain focused on pursuing select accretive acquisitions and leveraging our cost base to further enhance our margins and cash flow."