Kingscourt, Ireland -- Polyurethane insulated panel maker Kingspan has announced its acquisition of the Building Insulation Division of Pactiv.
Kingspan entered into an agreement with Pactiv to acquire the US building insulation business of Pactiv, which produces insulation products under the GreenGuard brand.
According to Kingspan's press release, Pactiv's sales amounted to $84m (EUR112m) in the first half of 2014 with the company's EBITDA (Earnings before interest tax, depreciation and amortisation) was $12.9m.
The press release stated: "The enterprise value is US$82m, of which $72m is payable in cash on completion plus $10m of working capital. Gross assets being acquired are $30m. The agreement is subject to local approval of licence and permit transfers.
Kingspan ceo Gene Murtagh said: "This investment represents a new and exciting frontier for our insulation business in North America, giving us 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," he added.
The acquisition will be funded from Kingspan's existing cash resources.
XE Currency conversion: 18 August, 2014
Xe Currency conversion: August
