Building materials group Kingspan has agreed a deal to buy the US building insulation business of Pactiv for $82m.

Pactiv produces a range of insulation products under the GreenGuard brand which it sells throughout the US from its manufacturing base in Virginia. The business had sales of $84m for the year to June 2014 and reported operating profits of $10m. 

Kingspan said it will fund the deal through its existing cash resources.

The deal is still subject to local approval of licence and permit transfers, the Co Cavan-based firm added.

Shares in the company were up over 3% in Dublin trade this afternoon.

Analysts said the deal was an attractive acquisition, which will enable the company increase its exposure to a growing North American market at an attractive multiple.

Kingspan's CEO Gene Murtagh said that the deal represents a "new and exciting frontier" for its insulation business in North America, giving the company particular exposure to the residential sector. 

"It is a tremendous opportunity for Kingspan to build upon the growing success of our existing insulated panel business throughout the region, and at a time when North America's focus on energy efficiency and security is at an all-time high, Mr Murtagh added.