Insulation industry news from Global Insulation

Netherlands: France-based Saint-Gobain has announced its acquisition of internal finishing and exterior insulation systems specialist Strikolith for an undisclosed price. Strikolith employs 50 people at its Raamsdonksveer, North Brabant plant and generated sales of Euro19.5m in 2019.

Saint-Gobain said, “The complementarity of Strikolith with Saint-Gobain's existing businesses enhances the group's solution offering and in particular allows it to strengthen its offering in External Thermal Insulation Composite Systems (ETICS) and in construction chemicals in the Netherlands, reinforcing Saint-Gobain's leading position in energy-efficient renovation in Europe.”

US: Installed Building Products (IBP) recorded a net income of US$41.3m in the first half of 2020, up by 49% year-on-year from US$27.8m in the first half of 2019. Sales were US$791m, up by 11% from US$714m. Chair and chief executive officer (CEO) Jeff Edwards said, “These record results demonstrate the success of our on-going geographic, end-market, and end-product diversification strategies, the benefits of our pricing strategies, and the hard work and dedication of our employees.”

The installer of insulation and complementary building products has also recently acquired Charleston Insulation and Foam and Savannah Insulation and Foam from Energy One America. Both companies provide foam, glass fibre and air barrier insulation installation services. Edwards said, “With total annual revenue of approximately US$22m, these branches expand our presence in two attractive markets. In addition, each branch provides multiple installation services, and end market diversification that fits extremely well within our overall growth strategy.”

Sweden: Denmark-based BewiSynbra has announced its acquisition of an extruded polystyrene (XPS) insulation plant in Norrköping after its conditional takeover of the owner for Euro5.6m including BewiSynbra’s assumption of its debts. The company says it will expand XPS production and install an expanded polystyrene (EPS) insulation line at the plant in late 2020, as a result of which it will close its nearby Norrtälje EPS insulation plant. It expects to conclude the deal in February 2020.

US: Huntsman has acquired the spray polyurethane foam (SPF) insulation producer Icynene-Lapolla from an affiliate of FFL Partners for US$350m. Icynene-Lapolla operates production facilities in Houston, US, and Mississuaga, Canada and made sales in excess of US$200m in 2019. Huntsman chairman, president and CEO Peter Huntsman said, “This combination of companies will provide Huntsman with the largest global array of spray foam technology, integration of raw materials and associates, improving energy efficiency.”

US: Huntsman has announced an agreement to acquire Icynene-Lapolla, a North American manufacturer and distributor of spray polyurethane foam (SPF) insulation systems for residential and commercial applications, for US$350m from an affiliate of FFL Partners. Icynene-Lapolla operates two manufacturing facilities located in Houston, Texas and Mississauga, Ontario. The transaction is expected to close in the first half of 2020.

“I am delighted that Icynene-Lapolla is joining our downstream, high-growth MDI urethanes insulation business. Icynene-Lapolla is well recognised by architects, builders and contractors as a market leader in the manufacture and supply of high-performance, energy-efficient building envelope solutions,” said Tony Hankins, the president of Huntsman's Polyurethanes division. He added that the combination of Icynene-Lapolla, with its SPF product range and reflective roof coatings, with Demilec, the SPF business that Huntsman acquired in 2018, would ‘significantly’ strengthen its energy-saving insulation business.

Romania: Switzerland’s Sika has announced its purchase of Adeplast, a mortars and thermal insulation producer, subject to clearance from Romanian anti-trust authorities. Adeplast generates Euro109m/yr across its four plants. Sika’s Europe, Middle East and Africa regional manager Ivo Schädler spoke positively of ‘exciting crossselling opportunities’ and the possibility of increased market penetration.

US: The building products manufacturer Johns Manville has announced its acquisition of ITW Insulation Systems, which specialises in low-temperature polyisocyanurate foam insulation and metal jacketing solutions, for an undisclosed price. Business Wire has reported that the deal is scheduled for closure in December 2019. Johns Manville CEO and president Mary Rhinehart said that the acquisition ‘will give greater versatility to Johns Mansville’s robust and well-rounded portfolio of insulation solutions.’

Belgium: Recticel has rejected an offer from Kingspan to buy its insulation division and flexible foams division for Euro700m. The board said that it did not believe that the offer was not in the interest of its stakeholders. It added that the sale of these divisions was not in line with its strategy and that the offer ‘significantly’ underestimated the value of the divisions.

Belgium: Recticel says that Kingspan Group has made a non-binding offer to buy its insulation division and flexible foams division for Euro700m. Kingspan says it has entered into a back-to-back agreement with an unnamed third party for the disposal of all of the flexible foams business. Recticel’s board of directors will analyse the proposal in line with its fiduciary duty and update the market. Any purchase would be subject to regulatory approval.

Saudi Arabia: Bawan has completed its acquisition of a 100% stake in Arnon Plastic Industries, a producer of polyethylene and polystyrene insulation and panelling products. It agreed the share acquisition in January 2019 but it was wiring for regulatory approval. Bawan operates in the concrete, wood, metal and electrical industries and the acquisition opens up a new market for the company.