Insulation industry news from Global Insulation

UK/Germany: UK-based private equity firm Charterhouse Capital Partners LLP has agreed to divest Armacell International SA in a deal that values the German insulation materials firm at Euro960m, according to Reuters. Charterhouse, which paid Euro520m for Armacell in 2013, will sell it to private equity funds managed by US Blackstone Group LP. The transaction is scheduled to close in the first quarter of 2016. Armacell reported net sales of Euro452m in 2014.

Luxembourg: Armacell, which produces flexible insulation foams and engineered foams for the equipment insulation market, has successfully continued its international growth strategy in 2014.

Armacell increased its net sales by 8.8% year-on-year to Euro452m in its 2014 financial year. Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by 9.6% year-on-year to Euro71.2m in 2014. Adjusted earnings before interest, taxes and amortisation (EBITA) improved by 8.7% to Euro56.1m. Due to continued efforts to improve cost performance, Armacell maintained an EBITA ratio relative to net sales of 12.4%.

Important drivers of Armacell's positive development were the ongoing growth in the construction/HVAC (heating, ventilation and air conditioning) business as well as the growing demand for the substitution of existing insulation with high-performance materials. A number of other growth drivers, such as continuing urbanisation, greater energy-efficiency and a renewed focus on noise protection, are also driving demand for the company's technical solutions and products.

"2014 was a successful year for Armacell. Our profitable growth in both our business segments and across all of our regions underlines the significance of our consistent international growth strategy," said Patrick Mathieu, CEO of Armacell International SA.

In 2014, Armacell recorded net sales growth in both of its business segments and across all three regions. In the Advanced Insulation business, net sales were up by 8.9% to Euro356m. This division accounted for 79% of net sales in 2014. Advanced Insulation encompasses all company activities relating to the development of flexible insulation foam products for the insulation of equipment. These include markets in which energy distribution is required, such as in commercial and residential construction, industrial applications, or the oil and gas industry.

In the Engineered Foams business segment, net sales increased by 8.9% to Euro94.6m, accounting for 21% of net sales in 2014. In this division, Armacell develops light foams for use in a wide range of end markets in which both product weight and robustness are essential, such as the automotive and wind energy industry.

A core component of Armacell's international growth strategy is its presence in emerging markets, which Armacell was able to further reinforce in 2014. In June 2014, it purchased the remaining shares in Armacell Zamil Middle East Company (AZMEC) in Saudi Arabia, from its previous joint venture partner Zamil Industrial Investment Co. Armacell also purchased Armatech Co Ltd in Korea, a long-time distribution partner and leading provider of engineered foams for the heating, sanitation and air conditioning industry.

Armacell consistently pursued its international growth strategy in the first quarter of 2015. It acquired Turkish insulation materials manufacturer Das Yalitim Sanayi ve Ticaret Anonim Sirketi (OneFlex). Armacell also acquired Industrial Thermo Polymers Limited (ITP) in Canada.

In 2015, Armacell will continue to focus on expanding its strong market position, globally marketing its technologies and delivering on its international growth strategy.

US/Canada: Armacell International SA, which produces flexible insulation foams for the equipment insulation market, has completed the acquisition of Industrial Thermo Polymers Limited (ITP), a producer of extruded polyethylene (EPS) foam products in North America.

"We are pleased and excited to welcome the employees of ITP into the Armacell family," said Thomas Himmel, vice president of the Americas and engineered foams for Armacell. "The acquisition of ITP supports our strategy to expand our manufacturing capability of polyethylene foam products. The Brampton facility will be the base for our future investment into the manufacture of polyethylene terephthalate (PET) foam in North America."

ITP was founded in 1980 and maintains headquarters in Toronto, Canada. Under the brand name Tundra, it manufactures self-sealing pipe insulation, insulating foam filler and water toys. In 2014, ITP generated US$23.5m in revenue.

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.