European insulation and engineered foams producer Armacell International SA announced it has extended its product portfolio in Latin America with the acquisition of Brazilian extruded polyethylene insulation foams maker PoliPex.
Armacell, based in Luxembourg, has purchased PoliPex Indústria e Comércio Ltda., which is headquartered in Florianopolis in the southern Brazilian state of Santa Catarina for an undisclosed sum. PoliPex, with around 80 employees, is a PE foams market leader with distribution centers in southern and northeastern Brazil.
PoliPex was formed in 1991 and has since achieved “solid growth rates and healthy operating margins.” In 2015, the firm recorded a 12 million euros ($13 million) in sales, according to Armacell which already operates a plant of its own at Pindamonhangaba, near São Paulo, Brazil.
The Luxembourg-based Armacell wants to extend its product offering in the region and grow its regional customer service. “The predicted rebound in the Brazilian economy and the overall construction market make PoliPex an attractive investment for us,” explained Armacell International's President and CEO Patrick Mattieu.
With the addition of the PoliPex plant, Armacell is well placed to further develop its manufacturing footprint in Latin America, his group made clear.
As part of its continuing international growth strategy, the group last year extended its PE foams capability elsewhere with the acquisition of Industrial Thermo Polymers (ITP), an extruded PE insulation materials maker based in Brampton, Canada.
Earlier this year, Armacell also launched its first flexible foam insulation production facility in Russia. The unit at Lobnya is manufacturing a range of insulation including high density material. This plant took Armacell's global spread to 23 facilities across 16 countries.
In 2015, Armacell, which currently employs a 2,800-strong workforce, reported that its 23 production units generated overall net sales worth just over 540 million euros ($588.9 million).