AN Irish building products manufacturer has bought Malaga-based insulation company Air-Cell Insulation for more than $13 million.
Under the deal with Kingspan Group, Air-Cell chairman Brian Tikey will vacate his seat on the board but remain involved with the company.
Air-Cell is a market leader in thermo reflective insulation, with sales approaching $30 million and a raft of environmental and building design awards to its name.
Mr Tikey said aligned corporate values between the two companies made the new venture a perfect fit.
“We’ve had a number of potential suitors over the last three years that didn’t go ahead – either we weren’t ready or it wasn’t the right cultural fit,” Mr Tikey told WA Business News.
Mr Tikey and fellow partners, Air-Cell managing director Scott Gibson, silent partner Jock Muir, and insulation manufacturer Sancell all took a share of the $13.4 million price tag.
Founded in Ireland more than 40 years ago, the Kingspan Group is now a global business, turning over $2.5 billion (€1.6 billion) in 2008 across all its product divisions.
Despite his resignation from the board, Mr Tikey remains committed to the industry he has been part of for more than 12 years and will continue with Air-Cell as a part-time consultant.
“The business is at that point where it’s set for further expansion and commercialisation of the technology we’ve got,” he said.
“It’s a marvellous opportunity for the brand and the people in the business; they are the hub, the engine room and they’ve been like family.
“And as president of the Aluminium Foil Insulation Association I will continue to represent the industry in my work with the federal government and Australian Standards.”
