Insulation industry news from Global Insulation

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.

Italy: Gamma Meccanica has acquired mineral wool pipe section production technology from Germany’s MPN Maschinenbau. As part of the purchase, Mark Desomer has joined the Italian mineral wool production line manufacturer. No value for the transaction has been disclosed.

“We are delighted to cooperate as one team in the future. It is an exciting new chapter to continue our journey to develop state of the art mineral wool pipe section production units based on our mutual know-how,” said Andrea Magnani Managing Director at Gamma Meccanica .

Romania: Sika has agreed to acquire Arcon Membrane, a manufacturer of roofing and waterproofing systems including thermal insulation systems for facades and roofs. Its insulation systems combine expanded polystyrene (EPS) sheets and bituminous membranes. Sika says that by buying Arcon it will strengthen its position in the local market and extend its product portfolio to meet the increasing demand for complete solutions in the roofing and waterproofing markets. The transaction is subject to approval by the Romanian anti-trust authority. No value for the purchase has been disclosed.

“Arcon’s market leading position, comprehensive product portfolio, and established distribution network will support our growth strategy by opening up new cross-selling opportunities, as well as increasing our market access and the penetration of key project,” said Ivo Schädler, Regional Manager Europe, Middle East and Africa (EMEA) at Sika.

US: Installed Building Products has purchased Advanced Fiber Technology (AFT) for an undisclosed value. Founded in 1988 and located in Bucyrus, Ohio, AFT manufactures cellulose, asphalt, and industrial fibres. The company sells its products to distributors and installers predominately in the Midwest and Northeastern US.

“AFT provides us with an opportunity to vertically integrate our cellulose insulation supply in certain markets which we believe will have an immediate and favourable impact on our business and financial results. Cellulose is an attractive alternative to fibreglass in a variety of insulation applications,” said Jeff Edwards, chairman and chief executive officer (CEO) of Installed Building Products.

Germany: Saint-Gobain has acquired HKO, a manufacturer of very high temperature thermal insulation and fire protection solutions made from various types of glass fibres to cover temperature resistances between 600 and 1000°C. The French building materials company said that the purchase was in line with its strategy of developing technological niches. It will join the ADFORS business within the High-Performance Materials Activity.

Founded in the 1970s, HKO employs 225 people and has two plants in Germany with sales affiliates in France, USA and China. It reported sales of Euro39m in 2017. With mostly customised solutions. It serves the construction, industrial and automotive markets.

China: Owens Corning has completed the acquisition of Guangde SKD Rock Wool Manufacture. SKD produces mineral wool insulation for the building and technical insulation market. No value for the purchase has been disclosed.

“We see great opportunity to provide our customers in China with products in both the mid temperature building and high-temperature industrial-application markets. This acquisition furthers our strategy to expand Owens Corning’s technology portfolio across the three largest insulation markets in the world,” said Owens Corning’s Insulation President Julian Francis.

Owens Corning now has seven insulation manufacturing facilities across China, that provide customers with a full temperature range of products including fiberglass, extruded polystyrene foam, cellular glass and mineral wool insulation.

US: Huntsman Corporation has acquired Demilec, a manufacturer and distributor of spray polyurethane foam (SPF) insulation systems for residential and commercial applications, from an affiliate of Sun Capital Partners for US$350m. The transaction is expected to close by the end of second quarter of 2018.

“Demilec has pioneered MDI SPF insulation and coating technologies for over 30 years, building a strong market reputation with architects, builders and designers. Demilec and the entire SPF industry has delivered strong double digit growth, which we expect to be sustained as their technology provides outstanding insulation performance in a world which is increasingly concerned with improving energy efficiency," said Tony Hankins, president of Huntsman's Polyurethanes division. He added that the company would be used to ‘aggressively’ expand the business into international markets.

Demilec has revenues of approximately US$170m/yr and two manufacturing plants located in Arlington, Texas and Boisbriand, Quebec where it produces a products from methylene diphenyl diisocyanate (MDI) based SPF formulations. It markets these directly to applicators as well as through distributors. Demilec specialises in both closed cell and open cell formulations, with a focus on products with renewable and recyclable content.

US: Owens Corning has completed its acquisition of Finland’s Paroc Group for Euro900m. Completion followed the US company obtaining all the necessary regulatory clearances to buy the mineral wool producer.

“We’ve had a strategic goal to broaden our product portfolio and diversify our geographic scope to better address our customers’ needs and support their growth. The acquisition of Paroc does both. We now have a leading position in Europe and in the global mineral wool business,” said Julian Francis, president of Owens Corning’s Insulation Business.

Italy: Switzerland’s Sika has purchased a majority stake in Index Construction Systems and Products, a manufacturer of insulation, roofing and waterproofing products based near Verona. The acquisition is intended to extend Sika’s position in the Italian market and offer advantages in Southern Europe and North Africa. No value for the transaction has been disclosed.

“Index is a proven industry leader and together we will hold a strong number one position in the Italian roofing market. On account of its high research and development competence, and expandable production capacity, Sika will establish the new site as its Southern European production hub for bituminous systems, with potential to also serve the Middle East and Africa,” said Paul Schuler, the chief executive officer (CEO) of Sika.

Index’s product portfolio consists of bituminous membranes for roofing and waterproofing, products for thermal and acoustic insulation, as well as waterproofing and repair mortars. The company mainly serves customers in Italy, but also in more than 100 other countries worldwide. Index was established in 1978 by Luigi Carlon, who has owned and run the company since then. To ensure a smooth transition, he will keep a minority stake and continue to contribute to the management of the company as the chairman of the board of Index.