US roofing manufacturer GAF to buy Danish peer Icopal for €1 bn

GAF, North America's largest roofing manufacturer, today struck a deal to buy Danish peer Icopal A/S from private equity firm Investcorp for €1 billion ($1.08 billion), in order to expand its presence in Europe.

The merger will create one of the world's leading roofing and waterproofing company with 65 manufacturing facilities worldwide, 6,500 employees, and an annual combined turnover of nearly $4 billion.

Bahrain-based Investcorp had acquired Icopal in 2007 for €850 million from Danish private equity firms Axcel and Kirkbi, US-based diversified manufacturing company Carlisle Companies Inc, Danish corporate bank FIH, and others.

Founded in 1876 and based in Denmark, Icopal is a manufacturer of roofing and waterproofing membranes and the market leader in the Nordic countries in the area of roof installation services.

The company's product portfolio further includes construction materials for the protection of buildings and other structures. Icopal's products are primarily used for non-residential construction applications across Europe, with a focus on the higher growth markets of Central and Eastern Europe.

It has 30 manufacturing sites and 84 offices throughout Europe and North America, employs around 4,000 people, and has annual revenue of about €1 billion.

Founded in 1886, GAF is the largest roofing manufacturer in North America, with approximately 3,000 employees, 29 manufacturing plants and annual sales of around $3 billion. The company's products includes a portfolio of steep-slope and commercial roofing systems.

Miguel Kohlmann, CEO of Icopal, said, ''GAF's long tradition of innovation, commitment to top quality and customer focus will complement Icopal's strengths and values. Our customers will benefit from enhanced scale, greater breadth of products and services, improved product innovation and an unparalleled global distribution network.''

Bob Tafaro, president and CEO of GAF, said, ''It is an established European leader with a strong business mix and a well-deserved reputation for the superb quality of its products, operations and people. We are also encouraged by the European business's growth in synthetic and liquid products and by the strategic vision of the Icopal team for those businesses.''