Insulation industry news from Global Insulation

Spain: Isover has launched APTA Arena, a new product in its APTA sand mineral wool line. It says it is intended for interior divisions offering high thermal and acoustic performance. The product is also made from over 50% of recycled materials and can be fully recycled after use.

Germany: Covestro has signed an agreement with HIG Capital, a private equity company, for the sale of its European Systems Houses business. HIG Capital aims to position the business towards mid-sized customers. Covestro will retain its polyurethane markets in Asia where it will continue to serve its customers. The sale is part of Covestro’s ongoing portfolio optimization process that includes the sale of Covestro’s North American spray polyurethane foam systems home business in 2017.

The systems houses businesses are part of the Covestro’s Polyurethanes segment and sell tailor-made polyurethanes systems. The European Systems Houses business comprises facilities in the Netherlands, Denmark, Spain, Germany and further businesses in Italy. Operations will continue at the current facilities while Covestro will continue to have strong ties with the systems houses business as a key polyurethanes supplier.

The closing of the transaction is expected for the second half of 2019 after the required antitrust clearance. No value for the sale has been disclosed.

France: Saint-Gobain plans to build a new glass wool production line at its Isover branded plant at Chemillé near Angers. The line is scheduled to start production in mid-2019. It is being built to meet rising demand in the French market for roof insulation products.

In addition, Saint-Gobain is planning to open new production lines at its plants in Azuqueca near Madrid in Spain and Vidalengo near Milan in Italy. These lines will open in spring and autumn 2018 respectively. Altogether Saint-Gobain has invested Euro45m in the upgrades with the majority placed in Chemillé.

Spain: Óscar del Río has been appointed as the chief executive officer (CEO) of Knauf Insulation Iberia. He suceeds Daniele Cerutti, according to Alimarket. Del Río has worked for Knauf for 18 years in a variety of different roles. He started at Knauf Industries, one of the subsidiaries of the group dedicated to the manufacture of expanded polystyrene insulation, as a regional commercial manager. Later he becacme head of sales for Knauf Insulation in 2007 and commercial director for the Mediterranean region in 2014. He was appointed as the director general of Knauf Insulation Iberia in November 2017.

Poland/Spain: Kingspan Group plans to buy Spain’s Synthesia group and Poland’s Balex Metal. Although no exact figure has been released, Kingspan has agreed to spend Euro620m on ten acquisitions, including Synthesia and Balex, so far in 2017.

"These latest acquisitions mark a significant strategic step forward for Kingspan. They are a perfect fit for our existing businesses and geographic footprint, and in addition provide a technology platform that will complement our on-going innovation pipeline and the development of next generation insulation," said Gene Murtagh, chief executive officer (CEO) of Kingspan.

Kingspan’s acquisition of Synthesia includes its Huurre and Poliuretanos businesses that produce insulation products in Spain, Portugal and in Central and South America. The deal includes a technology platform for blended chemical systems similar to those used throughout the wider Kingspan Group. Synthesia is headquartered near Barcelona, with eight manufacturing facilities across Northern Spain and Panama and approximately 575 employees across all businesses. The acquisition agreement is conditional on regulatory clearance, and is expected to complete during the first quarter of 2018.

Kingspan has also agreed to acquire Balex Metal, a Polish insulation producer. The Balex acquisition is conditional on regulatory clearance, and is expected to complete towards the end of the first quarter of 2018.

Europe/Spain: The European Commission has approved, under the European Union (EU) merger regulation, the acquisition of Spanish insulation producer URSA by Germany’s Xella. The commission concluded that the acquisition would raise no competition concerns because of the limited overlaps between the activities of the companies. The deal was first announced in August 2017 and it is expected to be completed by the end of 2017.

Spain: Spanish insulation firm URSA is to be sold by investment firm KKR to Germany’s Xella International GmbH. The sale is subject to the approval of the relevant competition authorities and is expected to be closed by the end of 2017. No value for the deal has been disclosed to date.

“We are looking forward to becoming part of the Xella Group,” said URSA CEO Pepyn Dindant. “Xella is a very successful company in the building materials industry and deeply understands our markets, customer needs and products. This will give us important impulses for our profitable growth strategy that we will keep on implementing with high priority and strong client focus.”

“Especially in recent years, URSA has delivered outstanding performance,” said Dr Jochen Fabritus, CEO of Xella Group. “We highly appreciate what URSA’s executives and employees have achieved and are looking forward to welcoming them as part of the Xella family. Consequently, URSA will become an independent business unit to continue its successful development. Xella will support URSA with all measures that are appropriate to achieve further profitable growth.”

Xella says that, while URSA will operate as an independent business unit focused on the specific needs of its clients in the insulation sector, there are various areas in which both companies will benefit from each other. URSA completes Xella’s portfolio of mineral-based building materials, creating opportunities to combine products of the new brand into innovative solutions. Also, in terms of size, geographical spread and management structure, URSA is very similar to Xella’s existing business units, allowing for a fast and smooth integration process.

Spain: Coemac, which was previously known as Uralita SA, has completed the sale of its insulation division to financial creditors led by KKR, an American multinational private equity company. Financial creditors acquired 90% of URSA Insulation Holding BV, while Coemac kept a 10% stake, according to Reuters.

Spain: Uralita has appointed Javier Gonzalez as its new CEO after former CEO Javier Serratosa stepped down as a result of a debt refinancing agreement.

The refinancing contract granted private equity company KKR Fund control over the majority of the capital of Uralita's insulation subsidiary Ursa, which generated approximately 70% of the company's consolidated revenue in 2014. Serratosa, who continues to maintain a stake in Uralita, will thus assume the presidency of Ursa, in which Uralita will continue to hold a 10% stake. Uralita additionally reinforced its executive team through the appointment of Gonzalo Serratosa as vice president.

Spain: Spanish construction group Uralita has taken a Euro320m seven-year loan to expand its European insulation business. The group formalised the agreement with KKR Asset Management to gain financial stability and expand the business. The agreement will allow the development of the pan-European insulation business of its branch company URSA Insulation.

"Uralita considers that this transaction provides the group with long-term financial stability, shows the Company's growth potential and will facilitate continued growth in the next years," commented Javier Serratosa, Uralita's president.