 "Kingspan acquires Pactiv's building insulation division in $82-mn deal")
Kingspan, the Ireland-based company involved in high performance insulation, building fabric and solar integrated building envelopes, has entered into an agreement to acquire Pactiv’s US building insulation business.
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 $84 million for the year to June 2014 and recorded an operating profit of $ 10 million in the period. The enterprise value is $ 82 million, of which $ 72 million is payable in cash on completion plus $ 10 million of working capital. Gross assets being acquired are $ 30 million. The agreement is subject to local approval of licence and permit transfers.
Gene Murtagh, CEO, Kingspan, “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.”
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 $84 million for the year to June 2014 and recorded an operating profit of $ 10 million in the period. The enterprise value is $ 82 million, of which $ 72 million is payable in cash on completion plus $ 10 million of working capital. Gross assets being acquired are $ 30 million. The agreement is subject to local approval of licence and permit transfers.
Gene Murtagh, CEO, Kingspan, “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.”