Image By: Pactiv Building Products Pactiv Building Products sells its insulation and building wraps products under the GreenGuard brand name.
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Topics Mergers & Acquisitions, Sustainability, Europe, United States, Construction
Irish building material manufacturer Kingspan Group plc is acquiring the insulation business of Lake Forest, Ill.-based Pactiv Building Products for $82 million as part of a strategic move to gain access into the U.S. market for energy-efficient houses.
Pactiv offers a wide range of extruded polystyrene (XPS) insulation and building wraps, which are manufactured in Winchester, Va., and sold under the GreenGuard brand.
The investment represents a new frontier for Kingspan in North America, according to CEO Gene Murtagh.
“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," Murtagh said in a news release.
The deal, which is expected to close around Oct. 1, will make Pactiv part of an ambitious growth plan that includes technical expertise in bringing the benefits of insulation and related weatherization products to a greater audience, added Alswinn Kieboom, Pactiv vice president and general manager.
Pactiv Building Products had sales of $84 million in the first half of 2014 and an operating profit of $10 million for the period. Gross assets being acquired are $30 million. Kingspan will pay $72 million cash plus $10 million for working capital.
Pactiv Building Products was a division of Lake Forest-based Pactiv LLC. That parent company is part of Reynolds Group Holdings, which is owned by Auckland, New Zealand-based Rank Group Ltd.