KINGSTON, N.Y. — The kingpan insulation market is booming, and it’s all due to a little-known brand called Kingspan.
The brand, a new name for a venerable brand, is making it all easier for homeowners to buy insulation and other home insulation products.
It’s been in business for nearly 70 years.
Now it’s worth about $2 billion, according to a Bloomberg analysis of filings with the Securities and Exchange Commission.
Kingspan has made its money from a niche market where a few high-end insulation brands make a lot of money, said Josh Shor, managing director at brokerage firm Taschen.
“The Kingpan brand has been doing this for about a century,” he said.
Taschen estimates Kingspan made $4 billion last year from its insulating products, a market that has shrunk about 25 percent from its peak in the 1990s.
But that doesn’t mean Kingspan has suddenly become a top-tier brand, said John W. White, a managing director of investment banking at brokerage company BlackRock.
In the late 1990s, it was a lot more than just a name, he said, adding Kingspan had a strong marketing strategy.
A Kingpan product sells for about $200,000, and its latest one is selling for $300,000.
The Kingpan company has about 2,600 employees, but the company doesn’t disclose how much revenue it generates from insulating homes.
Its annual sales rose 6 percent in the first quarter to $4.3 billion, a record, said Shor.
Shor said Kingpan had an excellent track record for delivering high-quality products, and that its business was growing fast.
Last year, the company raised $8.5 billion from a series of private investors and a private equity group led by billionaire George Soros, according the company’s filings.
When it comes to Kingspan, it’s not just the name that matters, Shor said.
It’s the quality of the product.
There are a lot fewer insulating insulation products on the market these days, White said.
The company makes an insulating coat that’s less expensive than what homeowners will pay.
I think we are seeing a shift from the old-school insulating technology to a brand-new type of product,” said Shore, who is not affiliated with the company.
Most insulating materials have an average rating of “good” or “excellent,” according to the U.S. Consumer Product Safety Commission.
Kingpan has a rating of a “very good” on that score.
So is Kingspan the best insulating product?
It depends on what you want from insulation, said White.
The best insulation material will probably have the best ratings, and a brand name will probably be the most important factor in that.
White, who does not own Kingspan stock, said Kingspan is more of a niche product than a brand.
The Insulation Association of America has an average ratings of “very bad” for insulating insulations.
That means a product is not recommended for the average home, but is probably not recommended at all, White added.
To put that into perspective, the average rating on Kingpan is “exceptionally good,” White said, but not as good as the rating on some of the insulating brands.
And the Kingspan rating is based on a small number of products that were sold.
Kingspan Insulation, for example, has sold more than 1 million coats.
This is one reason why Kingspan hasn’t been a “top-tier” brand, Shore said.
A “top tier” product is one that is rated “very” or good, and can get the most attention, White suggested.
However, the insulative companies are growing, and Kingpan, with its “good-to-excellent” rating, is a “big player” in that category, Shores said.
Kingspan is the latest to emerge from the boom in insulation as the global heating industry continues to ramp up, said David Tapp, president of the National Association of Home Builders.
Insulation has been one of the hottest industries, Tapp said, as homeowners are looking for more insulation and making more money with insulating.
Kingpan is in a good spot, Tampo said.
Its products have a good reputation.
Kingspans insulating coats are made in China, and the company is expanding.
It plans to expand its production in the U-S., Tamposaid.
Insulation is growing in the United States.
More than half of Americans now have insulation in their homes, up from just 20 percent in 2008,