French building materials and glass producer Compagnie de Saint-Gobain SA (EPA:SGO) announced on Friday it had agreed to purchase UK insulating foam producer Celotex Group Ltd, to enhance its presence in the particular market in Britain.
The transaction, the value of which was not given, is awaiting clearance by the Office of Fair Trading (OFT). Through it, Saint-Gobain will improve its insulation offerings for new segments like flat roofs and floors, it said. Furthermore, the move bolsters its positions in the insulation for the new construction and renovation markets.
Celotex specialises in providing solutions that boost energy efficiency in buildings. The firm. with a staff of 170, has two production lines in Hadleigh near Ipswich, the UK. In addition, it had recently increased its capacity by setting up a GBP3m (USD4.6m/EUR3.7m) distribution and innovation centre. The company’s turnover for the fiscal year to August 2011 amounted to GBP69.7m.
Following the takeover, Celotex will continue to operate under its current brand name and will retain its existing management team.
Saint-Gobain produces and distributes building materials with operations in 64 countries and a headcount of almost 195,000. The French company generates annual sales of EUR42.1bn (USD52.5bn). It already operates in the British and Irish insulation markets via its Isover brand.