Irish insulation and building materials manufacturer Kingspan has completed the acquisition of US firm Pactiv, it confirmed today.

The $82 million (€61 million) deal has been funded from Kingspan’s existing cash resources.

Pactiv produces a comprehensive range of XPS insulation products under the GreenGuard brand which it supplies throughout the USA from its manufacturing base in Virginia.

The business had sales of $84 million in the year to June 2014, and recorded an operating profit of $10 million in the period. The enterprise value is $82 million, of which $72 million is payable in cash on completion plus $10 million of working capital. Gross assets being acquired are $30 million, Kingspan said.

Analysts said the deal, Kingspan’s first foray into the residential market in the US, where it already has an industrial business, should help it to crack the market for energy efficient homes.

Cavan-based Kingspan reported a 4 per cent rise in revenues in the first six months of the year in August with revenues rising to €889.3million. Operating profit was up 24 per cent to €69.2 million.

Shares in Kingspan were up slightly in early morning trading in Dublin to €12.55.