Building materials group Kingspan has announced it is to buy CRH Insulation Europe (CIE) for €120m.
CIE has expanded polystyrene facilities in Finland, Sweden, Denmark, Netherlands, UK and Ireland.
In a statement Kingspan said it expected the acquisition to increase the company's foothold in Western Europe for meeting insulation needs.
Last year, CIE had revenue of €240m and operating profits of €10.6m.
Kingspan said it expected the acquisition to be earnings neutral in 2011 after restructuring costs and from then on enhance earnings.
The sale is expected to be completed early next year.
In a statement, Myles Lee, CRH Chief Executive, said: ‘The divestment announced today reflects the decision by the Group to exit its insulation business segment where the Group does not see potential for CRH to gain a market leadership position in Europe.
‘We are pleased that CRH Insulation is being sold to a strong industry player where the strategic fit is excellent.’
Shares in Kingspan closed up 1.6% this eveniing, while CRH ended 2.6% lower.
