GAF acquires Icopal
GAF has entered into a definitive agreement to acquire Icopal, a European roofing and waterproofing products manufacturer.
GAF will purchase Icopal from Investcorp Ltd for about €1 billion, with the transaction expected to close by the second quarter of 2016.
“We have tremendous respect for Icopal’s talented management team, and we welcome all of Icopal’s employees to the GAF family,” said Bob Tafaro, president and CEO of GAF. “It is an established European leader with a strong business mix and a well-deserved reputation for the superb quality of its products, operations and people. We are also encouraged by the European business’s growth in single-ply and liquid products and by the strategic vision of the Icopal team for those businesses. With its unparalleled reach across countries, distributors, contractors and building owners, Icopal is uniquely positioned to capitalize on the opportunities created by technological shifts – and GAF will be there to share its expertise and its resources.”
Herlev, Denmark-based Icopal is known for its modified bitumen membranes and single-ply and liquid roofing products. The company also provides products and solutions for the residential roofing, building membranes, below-grade waterproofing and civil engineering markets.
Icopal operates 36 production sites concentrated in Germany, the U.K., France and Scandinavia, with a family of brands that includes Icopal, Siplast, Vedag, Wolfin and Villas. It employs approximately 3,500 employees worldwide and has annual revenues of approximately €1 billion (US$1.1 billion).
Under GAF's leadership, the combined company will have nearly $4 billion in sales across more than 80 countries and 6,500 employees.
Additionally, GAF also announced that its parent company, Building Materials Corporation of America (“BMCA”), will be renamed Standard Industries Inc. The new name is a reference to GAF’s founding as the Standard Paint Company in 1886, as well as a reflection of its expanded brand portfolio and global reach.
“We are proud to combine Icopal and GAF, two leaders in their respective markets for over 100 years that share a culture of meritocracy, quality and customer service, and a passionate focus on developing their people” said David Millstone and David Winter, co-Chief Executive Officers of Standard Industries and Chief Investment Officers of 40 North Management, a privately-held investment affiliate. “We look forward to leveraging our most innovative ideas for the benefit of our customers. The enhanced scale and financial strength of our combined company positions us to lead the roofing industry on both sides of the Atlantic and beyond. This is a transformative first step for our company in its vision to be a leading global industrial manufacturer.”
Remodeling expected to trend upward
Spending on residential remodels will continue to trend upward, according to experts at a press conference hosted by the National Association of Home Builders (NAHB) Remodelers at the International Builders’ Show in Las Vegas.
Professional remodelers from around the country agreed with the forecast, citing clients’ increased financial security.
NAHB projects that remodeling spending for owner-occupied single-family homes will increase 1.1% in 2016 over 2015, and another 1.9% in 2017.
“Our remodeler members have regained confidence in the market as home owners move forward with new remodeling projects, as reflected in the positive fourth quarter results of NAHB’s Remodeling Market Index,” said 2016 NAHB Remodelers Chair Tim Shigley, a remodeler from Wichita, Kansas. “NAHB Remodelers looks forward to working in a strengthened market as remodeling continues to increase in popularity.”
“After recent revisions, Census estimates now indicate that improvements to owner occupied housing increased at a real rate of 1.3 percent last year, which is consistent with NAHB’s expectations and our measure of remodelers’ sentiment,” said Paul Emrath, NAHB’s vice president for survey and housing policy research. “Going forward, we expect this modest growth in the market to continue, fueled in part by steady appreciation in house prices that will enable owners to tap into their home equity to fund remodeling projects.”
“While the economic recovery has brought about a surge of remodeling activity for second homes in our market, access to credit continues to hamper the remodeling market’s full potential locally,” said Jeff Grantham, CAPS, CGP, CGR, GMB, a remodeler from Petoskey, Mich. “We remodel many of these homes to make them accessible to family members of all ages.”