Kingspan buys CRH Insulation Europe

KINGSPAN has acquired the European insulation business of fellow Irish building materials giant, CRH, for approximately €120 million, in a deal the company is viewing as key to strengthening its foothold on the continent.

CRH put this business — CRH Insulation Europe (CIE) — up for sale earlier this year along with its European climate control business.

By snapping up CIE, Kingspan will be substantially increasing its presence in the insulation products sector across Western Europe, where it already has a production facility in Holland.

The Cavan-based insulation specialist is also viewing the deal as a way to assume a market-leading position in Northern Europe, as well as a route to penetrate further into continental Europe.

“There are limited opportunities to acquire such market-leading positions — particularly in high-performance PIR [positions in polyisocyanuarate, or high-quality insulation] and this acquisition will provide a platform to drive growth and conversion to our products across Europe for many years to come in a positive regulatory environment,” Kingspan chief executive Gene Murtagh said yesterday.

The acquisition — which is conditional on regulatory approval — will not include every single subsidiary of the CIE business, but will cover the company’s facilities in Holland, Britain, Finland, Sweden, Denmark, Germany and Ireland.