Owens Corning to buy European mineral wool maker Paroc Group

(Reuters) - Insulation and roofing company Owens Corning said on Sunday it would buy European mineral wool maker Paroc Group from private equity firm CVC Capital Partners for about 900 million euros ($1.04 billion).

Owens expects to finance the deal through a combination of long-term debt and pre-payable bank financing.

Owens said the deal would help grow its presence in the European insulation market. Excluding transaction and integration costs, the deal is expected to immediately add to its 2018 earnings per share, Owens said.

The transaction is expected to generate an operational synergy run rate of 15 million euros by 2019 end, Owens added.

Paroc Group’s 2017 sales are expected to be about 410 million euros. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) margins would be slightly above 20 percent, Owens said.

Paroc operates facilities in Finland, Lithuania, Poland, Russia and Sweden, and has over 1,800 employees across 13 countries.

Reporting by Ismail Shakil in Bengaluru; Editing by Sandra Maler and Gopakumar Warrier