Monday, August 18 11:02:09
Irish insulation materials group, Kingspan, today said it will buy the US building insulation business of Pactiv for USD82m.
Pactiv produces a range of insulation products under the GreenGuard brand which it sells throughout the US from its manufacturing base in Virginia. The business had sales of $84m for the year to June 2014 and reported operating profits of $10m.
Kingspan said it will fund the deal through its existing cash resources.
The deal is still subject to local approval of licence and permit transfers, the Co Cavan-based firm added.
Kingspan's CEO Gene Murtagh said that the deal represents a "new and exciting frontier" for its insulation business in North America, giving the company particular exposure to the residential sector.
"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," Mr Murtagh added.
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