Kingspan acquires insulation assets of US outfit Pactiv

18th Aug 2014 17:00

Kingspan, the Ireland-based provider of low energy building solutions, has completed the acquisition of the Building Insulation Division of Pactiv, the company announced on Monday.Based in the US state of Virginia, Pactiv produces a range of insulation products under the GreenGuard brand and it recorded sales of $84m (£50.2m) for the financial year to June 2014, resulting in an operating profit of $10m for the period. "This investment represents a new and exciting frontier for our Insulation business in North America, giving us particular exposure to the residential sector," Gene Murtagh, Kingspan's chief executive said in a note on Monday."It is a tremendous opportunity for Kingspan to build upon the growing success of our existing Insulated Panel business throughout the region, and at a time when North America's focus on energy efficiency and security is at an all-time high."Pactiv recorded earnings before interest, taxes and depreciation (EBITDA) of $12.9m, while its enterprise value is $82m, of which $72m is payable in cash on completion plus $10m of working capital. As part of the deal Kingspan has also acquired $30m worth of gross assets.The deal, which will be funded by Kingspan's existing cash resources, is still subject to local approval of licence and permit transfers, the company confirmed in its statement.Kingpsan shares were up 3.10% to €12.98 at 14:46 on Monday.DC