Insulation industry news from Global Insulation

France: Saint-Gobain’s sales grew by 15.8% year-on-year to Euro44.2bn in 2021 from Euro38.1bn in 2020. Its earnings before taxation, interest, depreciation and amortisation (EBTIDA) rose by 41% to Euro6.20bn from Euro4.42bn. Sales and earnings increased by 4% and 27% compared to 2019 levels before the coronavirus pandemic started. Sales revenue and operation income was reported up in all geographical regions.

“The records achieved in 2021 confirm that the group has entered a new post-transformation trajectory in terms of performance: market-beating sales growth, record earnings and margins, a high level of free cash flow generation that has more than doubled compared to previous years, and strong value creation for our shareholders thanks to strict capital allocation and the determined execution of our portfolio optimisation,” said Benoit Bazin, the chief executive officer of Saint-Gobain.

The group completed or signed 37 acquisitions in 2021, including Chryso and GCP Applied Technologies (GCP), marking its rapid expansion into the construction chemicals market. In India the group announced it was buying stone wool producer Rockwool India in December 2021. The acquisition is expected to be completed by the end of the first quarter of 2022.

Saint-Gobain also reported that an ongoing investigation by the French competition authority into the building insulation productions market has reached the appeal stage. The group says that allegations of anti-competitive behaviour from 2001 to 2013 were dismissed in 2021, but that competitor insulation producer Actis appealed the decision and Saint-Gobain issued incidental appeals. The next hearing is expected by the end of 2022.

In relation to the ongoing public inquiry into the Grenfell Tower fire that took place in London, UK in 2017 the group said, “The extent to which Celotex may incur civil or criminal liability in connection with the production, marketing, supply or use of its products is currently unclear and Celotex and Saint-Gobain Construction Products UK are currently unable to make a reliable estimate of their potential liability in this respect.” Public hearings are anticipated to continue into mid-2022 with a final report to follow thereafter.

Slovakia: Ireland-based Kingspan has stopped an attempt to buy Trimo due to difficulties obtaining approval from the European Commission. Regulatory approval failed to arrive before a deadline set in August 2020 when Kingspan and Polish private equity fund Innova Capital signed a contract for the sale, according to the Finance newspaper and the Slovenian Press Agency. During its investigation the commission expressed concerns that the acquisition could reduce competition and lead to price rises in several countries. It added that the acquisition would have created the largest supplier of mineral wool sandwich panels in Europe.

Trimo was acquired by Innova Capital in 2016. It produces mineral wool sandwich panels and is reportedly the second largest seller of the products in Europe with a 10% market share. It operates production plants in Slovenia and Serbia and most sells panels in Europe. Innova Capital is expected to select a new buyer for Trimo.

Romania: Belgium-based Knauf Insulation has agreed to acquire the Târnăveni glass wool plant from Gecsat for an undisclosed sum.

Dominique Bossan, the group chief executive officer of Knauf Insulation, said “The Romanian acquisition will support Knauf Insulation’s growth ambitions and add extra capacity to meet increasing demand for our solutions across the Eastern European and Commonwealth of Independent States (CIS) regions.” He added that the company plans to upgrade the plant after the acquisition has been completed.

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.