Johns Manville acquires insulation group
Johns Manville, a manufacturer of building products, has announced the purchase of Industrial Insulation Group (IIG), a manufacturer of insulation for industrial, commercial and fireproofing applications.
IIG was formed in 2002 as a joint venture between Johns Manville and The Calsilite Group. Johns Manville previously owned a minority interest in IIG, but will now operate it as a standalone company wholly owned by Johns Manville. IIG’s product line complements Johns Manville’s portfolio of insulation products.
IIG offers a unique “good, better, best” portfolio of high-temperature insulation, ranging from mineral wool to perlite to calcium silicate.
“Expanding JM’s interest in IIG is another way we are addressing customers’ needs by offering the industry’s most complete line of insulation products,” said Todd Raba, chairman, president and CEO of Johns Manville. “IIG has a consistent track record of product performance, in keeping with the quality our customers expect from Johns Manville. We look forward to exploring opportunities to build on IIG’s strong market position and expand its product portfolio.”
Johns Manville does not plan to significantly change the operations at IIG. Existing IIG plants located in Brunswick, Ga.; Grambling, La.; Fruita, Colo.; Phenix City, Ala.; and Houston are a key part of Johns Manville future commercial and industrial strategy. IIG chairman and CEO Philippe Delouvrier will remain involved with the company in an advisory role.
Johns Manville, a Berkshire Hathaway company, is a Denver-based manufacturer and marketer of building insulation, mechanical insulation, commercial roofing and roof insulation, as well as fibers and nonwovens for commercial, industrial and residential applications.
USG to sell European operations
USG Corp. has entered into a definitive agreement for the sale of its wholly owned European business operations to affiliates of Gebr. Knauf Verwaltungsgesellschaft KG for approximately $80 million. That amount is subject to adjustment based on working capital and net debt levels at closing.
The businesses being sold include the manufacture and distribution of Donn brand ceiling grid and Sheetrock brand finishing compounds throughout Europe, Russia and Turkey.
“While USG’s European operations have been performing well, we prefer to focus our investment in higher growth markets,” said James Metcalf, chairman, president and CEO. “We contacted more than 60 potentially interested parties, including both strategic buyers and private equity firms, and decided to sell the businesses following a thorough evaluation that produced strong interest. We’re pleased with the value we are receiving for this group of assets.”
Closing of the sale is subject to receipt of necessary governmental approvals and other customary closing conditions. Closing is expected to take place in the fourth quarter of this year.
Headquartered in Chicago, USG is a manufacturer and distributor of high-performance building systems through its United States Gypsum Co., USG Interiors, L&W Supply Corp. and other subsidiaries. The company serves the commercial, residential, and repair and remodel construction markets.
Beacon Roofing Supply still on the prowl for acquisitions
Beacon Roofing Supply, one of the nation’s largest distributors of roofing, siding and other exterior building products, reported sales of $560.5 million for its third fiscal quarter, a 3.7% rise over sales of $540.7 million in the same quarter of 2011. Existing-market or same-store sales, which exclude branches acquired after the beginning of last year’s third quarter, declined 1.5%.
This year’s third-quarter sales were primarily impacted by lower non-residential roofing activity and less residential roofing activity in the markets affected by last spring’s hail storms, the company said. Sales results were also affected by the benefit of higher average selling prices.
Net income for the third quarter of 2012, which ended June 30, was $25.4 million, compared with $24.1 million a year ago.
Paul Isabella, the company’s president and CEO, said that most of Beacon’s regions were having “an exceptional year.”
“Our total sales have benefited from the positive impact from acquisitions, while our sales in existing markets for the third quarter fell only 1.5%. Sales in our existing markets were up against a very strong 11.6% increase in last year’s third quarter, when there was substantial roofing activities beginning in June from the spring 2011 hail storms.”
Beacon added two new companies to its roster in July: Structural Materials Co. in Southern California and Contractors Roofing & Supply Co. in St. Louis. “We are confident that we will add other quality companies in the near future that fit our target acquisition profile,” Isabella said. “Although we will be up against tough comparisons again in the fourth quarter, we expect a solid finish to fiscal 2012."