Owens Corning to acquire Paroc Group for €900 millionStaff Writer | October 30, 2017
Owens Corning announced that it has signed an agreement with CVC Capital Partners to acquire Paroc Group for an enterprise value of approximately €900 million.
Acquisition A European mineral wool manufacturer
Paroc is a European manufacturer of high-performance mineral wool insulation solutions for a variety of end markets.
Paroc manufactures building insulation for thermal, fire and acoustic applications in residential and commercial construction.
The company also manufactures technical insulation for HVAC systems; industrial processes; and the marine, offshore and original equipment manufacturer industries. Mineral wool products are customarily known as stonewool in Europe.
The acquisition of Paroc expands Owens Corning’s mineral wool technology, grows its presence in the European insulation market, provides access to a variety of new end-use markets and will increase the company’s sales mix of the Insulation business outside the U.S. and Canada to 35%.
Paroc’s 2017 sales are estimated to be approximately €410 million, with adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) margins slightly more than 20%.
The transaction is expected to be immediately accretive to 2018 earnings per share, excluding transaction and integration costs. The transaction is expected to yield a run rate of operational synergies of €15 million by the end of 2019.
Paroc employs over 1,800 people in 13 countries and operates facilities in Finland, Lithuania, Poland, Russia, and Sweden. ■