Austrian packaging and insulation materials specialist Hirsch Servo AG is boosting its EPS (expandable polystyrene) building insulation business with the takeover of three plants in Germany.
Hirsch Servo, based at Glanegg in southern Austria, signed an agreement to purchase the EPS insulating material units of the French Saint-Gobain materials group, scattered across Germany for an undisclosed sum.
The change of ownership of the plants at Rheda-Wiedenbrück in North Rhine-Westphalia, Ebrach in central Germany and Grombach in the south from subsidiary Saint-Gobain Rigips GmbH is due for completion by the end of March. Closure of the deal is still dependent on several conditions being fulfilled, says the parties.
Under the transaction, Hirsch Servo is set to take on around 180 German employees and Christian Grimm, the Saint-Gobain Rigips chief executive will continue to manage the insulation division under its new ownership.
“With the acquisition of Saint-Gobain's EPS insulation division, we want to further expand and secure our insulating materials business in the long term," said Harald Kogler, chief executive of HIRSCH Servo AG.
Kogler added the market for insulating materials in Germany “is developing well and we expect positive synergy effects for our packaging division in the medium term due to the positioning of the locations in conjunction with our experienced employees”.
Disposal of its EPS insulation operations fits perfectly with the strategic direction set by Saint-Gobain Rigips, which is focusing on its core business in dry, gypsum plasterboard and fibreboard panels, composite panels and interior design materials.
Hirsch Servo, which also processes expandable polypropylene (EPP) and expandable polyethylene (EPE), is a manufacturer of EPS and EPP parts and insulation moulding machinery. The firm has 13 production plants in Poland, Hungary, Slovakia, Romania and the Ukraine as well as Austria.
The latest deal follows a continuing growth pattern at the Austrian group. In 2016, Hirsch Servo’s EPS insulation business completed acquisitions of three plants in Romania where it already runs a facility for EPS packaging and insulation materials.