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18 Aug 2014 07:00
18th August 2014
Kingspan Group plc ("Kingspan") announces the acquisition of the Building Insulation Division of Pactiv LLC ("Pactiv").
Kingspan, the global leader in high performance insulation, building fabric and solar integrated building envelopes, is pleased to announce that it has entered into an agreement with Pactiv to acquire the US building insulation business of Pactiv.
Pactiv building insulation produces a comprehensive range of XPS insulation products under the GreenGuard brand which it supplies throughout the USA from its manufacturing base in Virginia. The business had sales of US$84m for the year to June 2014 and recorded an operating profit of US$10m (US$12.9m EBITDA) in the period. The Enterprise Value is US$82m, of which US$72m is payable in cash on completion plus US$10m of working capital. Gross assets being acquired are US$30m. The agreement is subject to local approval of licence and permit transfers.
The acquisition will be funded from Kingspan's existing cash resources.
Gene Murtagh, Kingspan CEO, commented:
"This investment represents a new and exciting frontier for our Insulation business in North America, giving us particular exposure to the residential sector. It is a tremendous opportunity for Kingspan to build upon the growing success of our existing Insulated Panel business throughout the region, and at a time when North America's focus on energy efficiency and security is at an all-time high."
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