Insulation industry news from Global Insulation

US/UK/Germany: US-based RPM International Inc has announced that its German tremco illbruck Group has acquired Firetherm Intumescent & Insulation Supplies Ltd, the UK market leader in fire-stopping solutions for the construction industry. Based in Kent, England, Firetherm has annual net sales of approximately Euro6.61m. Terms of the transaction, which is expected to be accretive to earnings within one year, were not disclosed.

Firetherm manufactures and supplies a broad range of fire-stopping products, intumescent coatings and fire-rated sealants and fibreboards. They are primarily sold to specialist fire-stopping contractors, general contractors and home-builders.

"Firetherm, with its high degree of fire-stopping technical expertise, is a good strategic fit with our tremco illbruck Group and its existing Nullifire intumescent coatings business. The acquisition expands tremco illbruck's product range and capabilities for fire-stopping products and propels it to the leading position for passive fire protection in the UK," said Frank C Sullivan, RPM chairman and CEO. "We expect to grow Firetherm in the UK and internationally by leveraging its products across the tremco illbruck distribution network."

Brazil: Saint-Gobain has acquired a 70% stake in Brazil-based British Indústria e Comércio Ltd for an undisclosed amount. Saint-Gobain said that the deal with the Brazilian group, which manufactures and sells non-woven abrasives for industrial applications, would strengthen its position in the industry and add new customers to its portfolio.

US: Installed Building Products (IBP) has acquired Florida's CQ Insulation. CQ Insulation is primarily an installer of fibreglass and cellulose insulation, with a 12 year operating history serving the Florida market through its two branch locations in Tampa and Orlando. It primarily focuses on new multi-family residential and commercial end markets. CQ Insulation's sales for 2014 were approximately US$6.9m.

"We are excited to announce the addition of CQ Insulation to our company as we continue to expand our national footprint," said Jeff Edwards, chairman and CEO of IBP. "The addition of these two established branch locations deepens our presence in the southeast and provides us with an attractive platform to pursue additional multi-family projects in our markets. As we move forward in 2015, we continue to see excellent acquisition opportunities in our target markets and we are well situated to further execute on our growth strategy."

US: Installed Building Products Inc has acquired BDI Insulation (BDI) for an aggregate purchase price of about US$36m. Funding for the acquisition is being provided by availability under the company's line of credit and cash on hand.

US: USI, a national provider of installed insulation and related services to builders, contractors and homeowners, has announced the acquisition of Cardalls Insulation, a Utah-based full-line insulation services contractor.

Founded in 2001 by Joe Cardall, family-run Cardalls Insulation has shown steady growth and employs approximately 125 personnel across four offices. After closing, Joe Cardall will become branch manager.

"We are excited to increase our service presence in Utah and Idaho with this acquisition," said L W Varner Jr, president and CEO of USI. "The prospect of bringing Cardalls' expertise, valued people and assets to USI is a significant opportunity for us. We expect a smooth transition and enhanced value for both our current and future customers." Varner added that USI's in Utah and Idaho is indicative of the future growth prospects of commercial and residential construction in the region.

Belgium: Kingspan has acquired full control of the industrial insulation products joint venture that it shares with Belgium's Recticel. Previously, the two groups each owned 50% of Kingspan Tarec Industrial Insulation (KTII). Kingspan has now taken full control of KTII via an estimated Euro8.5m purchase.

Kingspan and Recticel launched their joint venture in 2006, combining their respective industrial insulation businesses in the process. KTII is a niche operator, producing premium performance pipe insulation products for petrochemical operations and the cool truck industry. The business had revenues of around Euro31m in 2014.

Turkey/Luxembourg: Armacell International SA, a Luxembourg-based provider of insulation foams for the equipment insulation market, has acquired OneFlex, a Turkey-based manufacturer of insulation materials for building technology. OneFlex generated a revenue of US$11.2m in 2014. The acquisition will allow Armacell to strengthen its production capabilities and position in Turkey and to expand its footprint across the regions of Middle East, Africa and South-eastern Europe.

China: China Magnesium Corporation Ltd (CMC) has executed and commenced a cooperation agreement with Pingyao County Fengyan Mineral Wool Co Ltd (FMW), effective from 1 February 2015. The effect of the agreement is that CMC will have a 60% economic interest in FMW, control a majority of the FMW board seats and be responsible for the management of FMW's business.

FMW is an established and profitable medium-sized metallurgy company based in Pingyao, Shanxi Province. It is a wholly-owned subsidiary of Fengyan Coal & Coke Group Company Ltd. FMW can produce 150,000t/yr of ferronickel and uses the waste slag from the ferronickel production to produce mineral wool and mineral wool acoustic board products, among other industrial products. It currently purchases all of CMC's semi-coke to use in its ferronickel production. Any external ferronickel requirements in respect of CMC's recycling and production are also currently supplied to CMC by FMW.

US: Stepan plans to sell its speciality polyurethanes business to J6 Polymers. In 2014, the business generated sales of US$2.8bn. Stepan expects to make US$2.5 - 2.8m from the deal.
The sale includes intellectual property, formulations and production units, as well as client and supplier lists. Stepan makes polyurethanes at its plant in Millsdale, Illinois. It also uses custom manufacturers. Stepan will continue making polyurethanes on J6 Polymers' behalf at its Millsdale plant during the transition period. Stepan's polyurethanes are used in thermal insulation, coatings, adhesives, insulation materials and elastomers.

UK: Kingspan Group has agreed with Ergon Capital Partners II NV and Bremhove NV to acquire Steel Partners NV, a holding company of the Joris Ide Group. Joris Ide is a pan-European manufacturer and supplier of insulated panels, profiles and related accessories, with leading market positions in France, Belgium, the Netherlands and Luxembourg.

The acquisition will cost Euro315m, inclusive of debt. It will be satisfied on completion partly in cash and by the assumption of debt, with the balance of the consideration satisfied by the issue of three million shares in Kingspan Group to Bremhove NV, which is the holding company of the founder and major shareholder Joris Ide.