Owens Corning to Acquire Paroc Group

30 Oct 2017
Owens Corning (OC) today announced that it had signed an agreement with CVC Capital Partners to acquire Paroc Group (“Paroc”), one of Europe’s leading manufacturers of energy-efficient and fire-proof stone wool insulation solutions, for an enterprise value of approximately €900 million. The transaction, which is subject to regulatory approvals and other customary closing conditions, is anticipated to close in early 2018.

Paroc employs over 1,800 people in 13 countries and operates facilities in Finland, Lithuania, Poland, Russia, and Sweden. “I am very excited about our new opportunities with Owens Corning,” said Kari Lehtinen, CEO of Paroc. “We have built a company with a leading market position in Europe, offering attractive value propositions to our customers and employees. Owens Corning will help us to expand further in the Central and Western European markets, using our current solid base as the platform for growth.”

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%.

Owens Corning Chairman and CEO Mike Thaman said, “The acquisition of Paroc delivers on Owens Corning’s strategy to provide our customers with a portfolio of insulation products that cover the full temperature spectrum in the three largest insulation markets – Europe, North America and China. Over its 80-year history, Paroc has earned a reputation for high-quality products and technical expertise. I am impressed with the Paroc team and believe they will be a great addition to Owens Corning.”

Chairman of the Nordic Region at CVC Capital Partners Peter Törnquist said, “We are pleased with Paroc’s strong performance and would like to express our thanks to its highly motivated and experienced team and we wish them continued success as part of Owens Corning. There is a very compelling strategic match with Owens Corning in terms of geographical footprints, technologies and product offerings which will greatly benefit customers as well as employees and shareholders.”

The transaction will not interfere Paroc's business with its customers. They will continue to be served as usual.

Further information:

Kari Lehtinen, CEO, Paroc Group, tel. +358 46 876 8904

Olga van Iterson, Group Marketing & Communications Director, Paroc Group, tel. +358 50 325 2376

About Owens Corning
Owens Corning (NYSE: OC) develops, manufactures, and markets insulation, roofing, and fiberglass composites. Global in scope and human in scale, the company’s market-leading businesses use their deep expertise in materials, manufacturing, and building science to develop products and systems that save energy and improve comfort in commercial and residential buildings. Through its glass reinforcements business, the company makes thousands of products lighter, stronger, and more durable. Ultimately, Owens Corning people and products make the world a better place. Based in Toledo, Ohio, Owens Corning posted 2016 sales of $5.7 billion and employs about 17,000 people in 33 countries. It has been a Fortune 500® company for 63 consecutive years. For more information, please visit www.owenscorning.com.

About CVC Capital Partners
CVC Capital Partners is a leading private equity and investment advisory firm. Founded in 1981, CVC today has a network of 23 offices and approximately 400 employees throughout Europe, Asia and the U.S. To date, CVC has secured commitments of more than $107 billion from some of the world's leading institutional investors across its European and Asian private equity, strategic opportunities and growth funds. In total, CVC currently manages over $65 billion of assets. Today, funds managed or advised by CVC are invested in 50 companies worldwide, employing c.310,000 people in numerous countries. Together, these companies have combined annual sales of over $70 billion. For further information about CVC, please visit: www.cvc.com