Rockwool to Acquire Chicago Metallic
The Netherlands-based insulation and ceilings manufacturer the Rockwool Group has entered in an agreement of purchase of Chicago Metallic for $140 million. This marks the largest acquisition to date by the Rockwool Group.
The European company has recently made in-roads over the last couple of years: entering the North American market with a sales office in Milton, Ontario, Canada; breaking ground for a production facility in Mississippi and now this acquisition. Sales and marketing for Rockfon (its insulation and ceilings division) gave a presentation at this year’s CISCA on the benefits of using stone wool materials in products.
Obviously, the acquisition is part of the Rockwool’s Group’s strategy to globalize and develop its ceiling business which today accounts for approximately 10 percent of the Group’s revenues.
In 2012, Chicago Metallic had a turnover of $139 million and employed a total of close to 600 employees. The EBITDA ratio has in recent years been around the level of 14 percent.
The acquisition will allow the Group to offer and develop more complete solutions to its customers by offering not only ceiling panels but also the metallic grid which is a key element in the suspended ceiling system.
Additionally, the acquisition will give a major growth boost to the Group’s ceiling strategy in North America, as well as Asia, allowing a significant acceleration to the already on-going expansion into these regions.
Earlier this year, Rockwool invited Walls & Ceilings to Amsterdam for a meet-and-greet with its Dutch and Canadian staff. The purpose of the visit was also to showcase how the company’s ceiling and insulation products performed in various city locales.