Irish insulation and building materials manufacturer Kingspan has acquired the building insulation division of US company Pactiv for $82 million (€61m). The acquisition will be funded from Kingspan's existing cash resources.

Pactiv produces a comprehensive range of XPS insulation products under the GreenGuard brand which it supplies throughout the USA from its manufacturing base in Virginia. The business had sales of $84 million in the year to June 2014, and recorded an operating profit of $10 million in the period. The enterprise value is $82 million, of which $72 million is payable in cash on completion plus $10 million of working capital. Gross assets being acquired are $30 million, Kingspan said.

Gene Murtagh, Kingspan CEO, said the acquisition represents "a new and exciting frontier" for the company's insulation business in North America, and will give particular exposure to the residential sector.

“It is a tremendous opportunity for Kingspan to build upon the growing success of our existing insulated panel business throughout the region, and at a time when North America’s focus on energy efficiency and security is at an all-time high,” he said.

The acquisition is subject to local approval of licence and permit transfers.