Owens Corning (OC) to Purchase Natural Polymers, Portfolio Enhancement – June 22, 2022

Owens Corning Company (OC Free Report) has signed a deal to acquire aerosol insulating polyurethane foam manufacturer, Natural Polymers, LLC, thus expanding its core insulation product offerings. However, the terms of the deal, which is expected to expire in the third quarter of 2022, were not disclosed.

Shares of the building materials systems and composite solutions provider fell 0.5% in the trading session on June 21, 2022.

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Headquartered in Cortland, Illinois, Natural Polymers is experienced in developing high quality products and systems, offering the lowest volatile organic compounds products currently available in the spray foam industry.

Various business products for natural polymers are GREENGUARD Gold certified by Underwriter Laboratories, which helps reduce indoor air pollution and the risk of chemical exposure.

This acquisition will advance Owens Corning’s approach to strengthening core building and construction products, and expanding routable markets into higher growth segments.

Natural Polymers technology will enable Owens Corning to offer a more diverse portfolio of insulation products to its customers.

The Natural Polymers business, which is expected to generate $100 million in sales in 2022, has demonstrated a solid track record of above-market growth. It is also expected to achieve double-digit growth over the next several years.

Product expansion through acquisitions

Acquisitions are an important part of Owens Corning’s growth strategy. It evaluates its investments in proven acquisitions that enhance its commercial, operational and geographic strength and expand its functional areas of business.

In April 2022, Owens Corning signed a deal with JR Plastics Corporation to acquire WearDeck, the premium producer of weather-resistant composite panels for commercial and residential applications. It is estimated that WearDeck will generate approximately $60 million in revenue in 2022.

Owens Corning continues to invest in accelerating new product and process innovation to support customers and generate incremental growth. Owens Corning expects to gain from its existing product portfolio and initiatives to improve production efficiency. His efforts to offer products are encouraging. During the first quarter of 2022, the company launched 16 new or updated products across global companies. These products span across core product platforms, including roofing sheets and components, XPS insulating foam and mineral wool, wind, non-woven, and other composite materials.

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As for share price performance, OC’s shares have outperformed its industry so far this year despite supply chain disruptions, and significant material and transportation inflation, given the aforementioned tailwinds.

Ranked No. 3 (Hold) Zacks benefits from market leaders, innovative products, processing technologies and capabilities.

you can see The full list of Zacks #1 stocks (strong buy) today is here.

3 top rated building stocks to buy

Some of the best-rated stocks that require a look into the construction sector are Meritage Homes (MTH free report), NVR, Inc. (NVR free report) and M/I Homes, Inc. (MHO free report).

Meritage Homes It is one of the leading designers and builders of single-family homes. The company currently enjoys a Zacks ranking of #1.

Meritage Homes is down 46.8% year-to-date. However, earnings are expected to grow 42.7% in 2022. Earnings estimates have moved 1.4% north for 2022 over the past 30 days.

NVR Currently rated Zacks #1. The company builds and sells single-family detached homes, townhouses and apartment buildings, all built primarily on a pre-sale basis.

NVR shares are down 35.6% over a year. However, earnings are expected to grow by 68.4% in 2022. Estimated earnings have increased by 20.4% for 2022 over the past 30 days.

Homes m/i It currently has a Zacks rating of #2 (Buy). This is one of the pioneers in building single-family homes in the country.

M/I Homes has lost 42.1% since the beginning of the year. 2022 earnings are expected to grow by 21.3%. Earnings estimates have increased 5.6% for 2022 over the past 30 days.

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