Kingspan bolts on its latest US acquisition for €61m
Cavan-based building supplies manufacturer Kingspan is expanding its US presence with the $82m (€61m) acquisition of a residential insulation business.
The deal is to buy the American insulation division of Pactiv, which manufactures under the GreenGuard brand and supplies builders throughout the US from a manufacturing base in the state of Virginia.
The deal has an enterprise value of $82m, including €72m in cash and a $10m working capital contribution.
The assets acquired have a gross value $30m, Kingspan said in a statement.
Kingspan said it was financing the deal from its existing cash reserves.
"This investment represents a new and exciting frontier for our insulation business in North America, giving us particular exposure to the residential sector," chief executive Gene Murtagh, pictured left, said.
"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,"
Kingspan is a global player in specialist construction products including insulation, pipes, pre-fabricated and solar products.
In May the company said it has financial headroom of about €500m to spend on acquisitions. The US and Europe are the likely to be the main source of deals, but executives have identified Brazil as a potential new market for expansion, though so far no deals have been done there.