Insulation industry news from Global Insulation

Spain: Etex has signed a deal with Germany-based Xella Group for the acquisition of its subsidiary URSA. The Belgium-based group says that the move confirms its portfolio shift towards lightweight construction materials. URSA produces its expanded polystyrene (EPS), extruded polystyrene (XPS) and glass and mineral wool insulation across a total of 13 sites and has operations in 20 European countries.

Chief executive officer Bernard Delvaux said “The acquisition of URSA confirms the portfolio shift initiated a few years ago by Etex to become a global leader in lightweight and modular construction. This acquisition is a strategic fit for Etex combining a new growth platform with a strong focus on sustainability. I have been truly impressed by both the quality of the management at URSA and its sound business model. I look forward to welcoming our new teammates to Etex and embarking on a prosperous future together.”

India: France-based Saint-Gobain has agreed to buy Rockwool India from Alghanim Group for an undisclosed amount. The acquisition will see Saint-Gobain enter the insulation sector directly in the country adding to its existing presence in the gypsum, glass and construction chemical sectors. The deal is subject to the completion of conditions set out in the agreement and approvals from the relevant authorities. It is expected to be completed in first quarter of 2022.

Rockwool India is a manufacturer of stone wool in India with a wide range of insulation products for thermal, acoustic and fire safety applications. It is also a licensee of Saint-Gobain technology for the manufacture of stone wool in the country. The company operates two production plants, one in Hyderabad and another in Silvassa, with a total capacity of around 50,000t/yr. Saint-Gobain also said that it has a ‘strong’ marketing network across the country.

Czech Republic: Austria-based Austrotherm has successfully completed a 100% takeover of expanded polystyrene (EPS) producer DCD IDEAL.

Austrotherm’s CEO Klaus Haberfellner said “With the purchase of DCD, we are closing the last white spot in our core markets of Central and Eastern Europe and are thus strengthening Austrotherm's market position. DCD and Austrotherm are successful family businesses that harmonise well in terms of their corporate cultures. The takeover of DCD supports the strategy of continuing to invest in our core products EPS and extruded polystyrene (XPS).” He added “We are pleased about the opportunity to expand our climate-friendly product range for our customers, to be able to supply our XPS customers in the Czech Republic with EPS and thus to offer them an even better service."

Belgium: Plastics producer Greiner has offered to fully acquire Recticel for Euro1.17bn, including debt. Austria-based Greiner currently holds a 27% stake in the company. The group has valued Recticel’s insulation business at Euro411m. However, Recticel has said that the offer undervalues the division. US-based foam and fibres producer Carpenter previously valued the insulation business at Euro656m in its on-going bid to acquire the company’s engineered foams unit.

Recticel has until 17 December 2021 to issue its decision on the Greiner offer. Before then, it will decide on the possible sale of its engineered foams unit to Carpenter at an extraordinary general meeting. It is currently carrying out due diligence checks for the latter deal.

Norway: Bewi’s shareholders have voted in favour of the company’s acquisition of the remaining 50% of Jackon Holding in order to become sole owner. Bewi will hold an extraordinary general meeting following the completion of due diligence checks to authorise the issuance of Bewi shares as consideration for the deal to Jackon Holdings’ controlling shareholder Haas.

US: Ireland-based Kingspan has acquired Minnesota Diversified Products, the producer of the DiversiFoam range of expanded polystyrene (EPS) and extruded polystyrene (XPS) foam and polyisocyanurate (PIR) foam billets. The group says that DiversiFoam will join Kingspan Insulation’s North American division and become a key proponent of its 10-year sustainability programme, Planet Passionate. It plans to expand the company’s Rockford EPS foam plastic recycling plant. Minnesota Diversified Products is committed to recycling 99% of production waste.

Managing Director Doug Crawford said "DiversiFoam and Kingspan are a natural fit from a geographic, technical and cultural perspective. The combination of these two outstanding businesses, coupled with Kingspan’s commitment to further investment will provide our collective customer base, our employees and our business partners with significant value. I am thrilled to welcome the DiversiFoam team into the Kingspan family.”

Romania: France-based Saint-Gobain has completed its acquisition of adhesives and construction chemicals producer Duraviz for an undisclosed sum.

The group said that the acquisition will enable it to expand its interior and exterior finishing product range. Saint-Gobain employs 1800 people at 12 sites in Romania.

Ireland: Xtratherm has agreed to acquire Ballytherm’s Ireland and UK operations. The businesses include one polyisocyanurate (PIR) insulation plant in Ballyconnell, County Cavan and a new production unit that the company is preparing to open at Ross-on-Wye in the UK. The expansion is intended to expand the operations of Unilin Insulation, the owner of Xtratherm, in the UK and Ireland.

Barry Rafferty, the managing director of Xtratherm, said “The acquisition of Ballytherm, along with additional investment in new technologies will allow Xtratherm to deliver on operational excellence, new product innovations and improved service that will contribute towards a stronger and more sustainable future for our employees, customers and the construction sector in the UK and Ireland.” At present Xtratherm operates two foam insulation plants in Ireland and the UK respectively.

The proposed acquisition will be subject to the approval of competition authorities in Ireland. The transaction is expected to complete by the end of 2021.

Romania: France-based Saint-Gobain has acquired Duraziv, a producer of adhesives and other construction chemicals. The group said that the purchase would allow it to expand its range of interior and exterior finishing solutions. It also hopes the move will drive an improvement in the energy efficiency of buildings in Romania thanks to external thermal insulation solutions (ETICS) based on locally-produced stone wool and mortars. This latest addition follows the recent acquisition of Russia-based Adhesive Scientific and Production Company, a producer of polyurethane (PUR) and epoxy products.

Poland: Belgium-based Recticel has signed a preliminary agreement with Poland-based insulation company Gór-Stal. Under the agreement, the producer will acquire the company’s polyisocyanurate (PIR) insulation business for Euro30.0m. The company employs 66 people at its Bochnia plant in Lesser Poland Province. In 2020 it generated net sales Euro16.7m and earnings before interest, taxation, depreciation and amortisation (EBITDA) of Euro2.50m. Its capacity utilisation rate was 40%.

Chief executive officer Olivier Chapelle said, “The acquisition of the Gór-Stal PIR-based insulation board activities marks an important step in the development of our insulation business. This acquisition perfectly fits our ambition to further expand in the growing thermal insulation markets of Central and Eastern Europe. It meets three fundamental prerequisites: a state-of-the-art asset, a perfect geographical complementarily, and a focus on high performance PIR insulation solutions. We look forward to welcoming our new and highly skilled colleagues from Gór-Stal.”

Recticel expect to close the deal in July 2021.