THACKERVILLE, Okla. — Companies tied to the increasingly consolidating building envelope industry awoke in a new world Thursday after news broke that Texas-based IB Roof Systems, founded in 1978 by Larry Stanley, now helmed by his son, Jason, announced the company’s acquisition by the multinational Kingspan Group.
Although the news, announced in a September 18 press release, offered no timeline for the transaction’s close, the move tracks with Kingspan’s aggressive moves in roofing and insulation in 2023.
The acquisition is Kingspan's first foray into the U.S. single-ply roofing space. The company said the IB purchase offers it an immediate and established position within the PVC membrane category. It also coincides with Kingspan's independent investments in TPO membrane and polyiso insulation board manufacturing in Oklahoma and Maryland.
“I am proud of the legacy our family has built at IB and am truly excited about the next chapter,” Jason Stanley said in a statement. “The coming together of the two businesses opens up considerable opportunities to grow our PVC systems market share and to broaden our solutions offering.”
Stanley added that Kingspan’s culture and customer focus strongly align with IB’s values.
In the press release, Kingspan emphasized the companies’ synergies, highlighting the future potential for IB’s market growth and asserting its strategy to compete in the competitive U.S. market for complete roofing systems solutions.
“We are excited to make our first step into the US single-ply roofing market,” stated Donal Curtin, managing director of Kingspan’s Roofing & Waterproofing Division. “IB’s team has built a trusted reputation for delivering premium roof systems and gives us an excellent development platform.”
Kingspan's heft is significant and will give IB the resources to compete on a scale with bellwethers Sika and Duro-Last.
According to its 2023 annual report, Kingspan has a market capitalization of €15.7 billion, or roughly $17.4 billion. The company has 22,500 employees worldwide, operates in 70 countries and lists shares on the London Stock Exchange and Euronext Dublin; shares closed Wednesday at £60.25 and €70.50, respectively.
Based in Dublin, Kingspan derives about 70 percent of its revenue from Europe and less than 25 percent from the Americas. Nearly 60% of its 2023 revenue — €8 billion — came from its insulated panel manufacturing segment.
The company focuses two-thirds of its manufacturing effort in the commercial sector, with roughly 77 % of sales generated by its insulated panel and insulation divisions, its annual report showed. The purchase of IB is in line with the explosive growth in sales from its roofing and waterproofing properties. Those subsectors combined for an astonishing 222% increase in sales year-over-year, virtually carrying the firm’s other core industries, including lighting and ventilation products, data, flooring, cold storage and agriculture.
Stanley will continue running IB and retain 10% of its new shares. While deal terms were not disclosed, the private company tracking website Gojo has pegged IB’s annual revenues to be just south of $100 million.
“We look forward to welcoming the IB team to the Kingspan family and to supporting and investing in their future growth,” Curtin added.
Updated 09.19.24 at 7:56 a.m. to reflect the change in the headline from "sold" to "acquired."
