Kingspan Group Plc, the Irish manufacturer of building components, is making its first foray into the Middle East by acquiring Dubai-based insulation maker Rigidal Industries for $38.6m.
While Kingspan's products have been used extensively on landmark projects such as the Dubai Metro and Dubai International Airport, this will be the first time it will have a manufacturing presence in the region.
PwC, an international professional services firm, acted as the lead sell-side advisor to the shareholders of Rigidal Industries in selling the company to Kingspan Group, which is listed on the Irish stock exchange.
The acquisition of Rigidal, a leading manufacturer and fabricator of aluminium and steel roofing and cladding systems based in the UAE, provides Kingspan with a strong base to address the GCC market and offer complementary products, it said in a statement.
The transaction serves Kingspan's strategy of growing the business of sustainable building envelopes through modern methods of construction, the company added.
Nitin Khanna, a partner at PwC who led the transaction, said: "This sale was driven by the desire of the existing shareholders to monetise value whilst bringing on board a suitably-positioned strategic investor who is capable of accelerating the company's progress and help develop its business further."