Insulation industry news from Global Insulation

Romania: Hirsch Servo has bought the insulating material division of Arcon. The deal includes two expanded polystyrene (EPS) insulation production plants in Bucharest and Sfantu Gheorghe. No price for the transaction has been released. Hirsch Servo will become the second largest insulation producer in the country, following its purchase of the Energoterom insulation plant at Timisoara in July 2016.

US: Installed Building Products has acquired Southern Insulators & Specialties, a fibreglass and spray foam insulation installer based in Covington, Louisiana. No value for the purchase was released.

"Southern has a large presence in the state of Louisiana with trailing-12 month revenues of approximately US$5m," said Jeff Edwards, Chairman and Chief Executive Officer. He added that Installed Building Products has completed six acquisitions, representing nearly US$53m of annual revenue, since the start of 2016.

UK: SIG’s revenue has risen by 11% year-on-year to Euro1.61bn for the first half of 2016 from Euro1.45bn in the same period in 2015. Its operating profit rose by 37% to Euro53.8m from Euro39.3m. The insulation producer attributed the increase in sales revenue on acquisitions and foreign exchange effects.

“The group delivered a solid first half performance with good progress on its Strategic Initiatives offsetting the twin pressures of variable trading conditions, particularly in Mainland Europe, and a competitive market environment,” said Stuart Mitchell, Chief Executive. He added that the company had observed a slowing of UK construction market activity following the country’s decision to leave the European Union. However, SIG’s risk to Brexit should be minimised as its mainly buys and sells its products within each country.

US: Installed Building Products’ (IBP) net revenue has risen by 40% year-on-year to US$404m in the first half of 2016 from US$290m in the same period of 2015. Its net income more than doubled to US$15.8m from US$7.7m. The insulation installation company attributed the strong result to growth in the residential building market.

"Our results continue to benefit from strength throughout the homebuilding industry, growth at our existing branch locations and the contribution of our recently acquired businesses,” said Jeff Edwards, chairman and chief executive officer of IBP.

UK: Knauf Insulation plans to spend Euro5m to upgrade its mineral wool plant in Queensferry in Flintshire, Wales. The investment will deliver thermal and mechanical improvements, along with an increased portfolio of insulation solutions. It will also support the group’s Ecose Technology binder product.

“We are especially pleased to announce this investment at Queensferry, given the uncertainty many other businesses and investors currently face. That uncertainty applies to wider concerns around the impact of Brexit on economic activity, but also to key sectors we service such as the construction industry, UK energy and energy efficiency businesses,” said John Sinfield, Managing Director at Knauf Insulation Northern Europe. “This decision demonstrates that a drive on energy efficiency will deliver greater energy security, increased UK economic competiveness and help address environmental commitments. We would hope that the new government, and especially the new Department for Business, Energy and Industrial Strategy, considers these outcomes when exploring what its new strategy is to be.”

Knauf Insulation acquired sole ownership of its UK business in 2002. It has since invested Euro179m at its UK plants.