Saint-Gobain has finalized the sale of its HKO technical textile and insulation business, including French subsidiary Deltec, to a fund managed by Germany-based investment firm DUBAG Group. The transaction marks another step in the building materials giant's ongoing strategy to streamline operations and focus on core growth markets.

The divested business specializes in manufacturing technical textile components used in high-temperature insulation applications, serving customers in the automotive and industrial sectors. HKO operates manufacturing facilities in Oberhausen, Beuren and Leinefelde, Germany, as well as Wattignies, France.

According to Saint-Gobain, the business generated approximately €45 million ($U.S.54) in revenue during 2025 and employs around 220 people across its four production sites.

The transaction aligns with Saint-Gobain's broader portfolio optimization strategy, which has included a series of acquisitions and divestitures designed to strengthen its position in sustainable construction and advanced materials markets. In recent years, the company has focused investment on high-growth segments while divesting businesses considered non-core to its long-term objectives.

For DUBAG Group, the acquisition expands its portfolio of industrial businesses undergoing operational development and transformation. The investment firm specializes in acquiring and supporting carve-outs and corporate spin-offs throughout Europe, often targeting manufacturing operations with established market positions and growth potential.

Industry observers note that demand for high-temperature insulation materials remains supported by ongoing developments in vehicle electrification, industrial energy efficiency initiatives and increasingly stringent thermal management requirements across manufacturing sectors.

With the transaction now complete, HKO and Deltec will continue serving automotive and industrial customers under DUBAG Group ownership, while Saint-Gobain advances its strategic focus on building solutions and specialty materials businesses that support its global growth objectives.

Financial terms of the transaction were not disclosed.