01 October 2013
The ROCKWOOL Group acquires Chicago Metallic Company
The ROCKWOOL Group has acquired US based ceilings grid manufacturer Chicago Metallic Company (CMC) in a deal which enables ROCKFON, the ROCKWOOL Group’s stone wool acoustic ceiling and wall solutions division, to offer complete systems to its global markets.
Chicago-based CMC is a global provider of ceiling products and services including suspended grid systems and metal ceiling panels. It has a strong history and a market leading position in North America and Europe and an emerging position in Far East Asia. CMC has a network of sales and distribution channels throughout Europe, North America and Asia supported by production facilities in Belgium, the USA, China and Malaysia. In 2012, CMC generated USD 139 million (€ 103 million) in revenues and employs approximately 600 employees. www.chicagometallic.com
This acquisition is part of the ROCKWOOL Group’s strategy to globalise and develop its ceiling business which today accounts for approximately 10% of Group revenues. ROCKWOOL International A/S reported more than € 1.97 billion in revenue in 2012 and has nearly 10,000 employees across 40 countries. www.rockwool.com.
Commenting on the acquisition, Division Managing Director of the ROCKWOOL Group’s Systems Division, Herman Voortman, said: “This acquisition complements well the existing ROCKFON business concept. It will allow us to create and develop more complete solutions to our customers by offering not only ceiling panels but also the metal grid, which is a key element in the suspended ceiling system. Additionally, the acquisition will be a major boost for the Group’s ceiling strategy in North America and Asia allowing the Group to significantly accelerate the expansion into these regions. CMC has strong organisations and distribution networks in both areas and it would have taken us a long time to establish a similar footprint.”
Both the ROCKWOOL group and CMC can trace their company histories back for more than a century. ROCKFON and CMC have collaborated in the past. The purchase is seen by the management of each company as a good fit in terms of product offering and corporate aspiration in the markets in which both firms operate. ROCKFON and CMC businesses share many characteristics. These include a focus on specialist manufacturing innovation allied to strong technical support, product development and customer service. The strategy is to identify where the new partnership and product offering can be enhanced through collaboration and integration.
Founded in 1893, CMC has been owned by the Jahn family since 1937. Former CMC Chairman and CEO, Charles Jahn commented: “The complementary product and service offerings of ROCKFON and CMC will provide our customers with a wider choice throughout the world. The values of the CMC Jahn and ROCKWOOL Kähler founding families are strongly aligned and will continue to serve our employees and customers well into the future. We look forward to the exciting growth opportunities to come from this transaction.”
Senior management is currently working on how to best integrate both companies efficiently and to the benefit of employees and customers in all of the countries in which they operate.
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