Owens Corning (NYSE: OC) is purchasing Paroc Group, an European manufacturer of mineral wool insulation, from CVC Capital Partners. The deal, valued at approximately $1.04 billion, is expected to close in early 2018.

Paroc produces “high-performance” building insulation used for thermal, fire and acoustic needs in the residential and commercial construction sectors. In addition to its mineral wool materials, the Helsinki, Finland-based company also makes technical insulation for HVAC systems, industrial, marine, offshore and equipment manufacturer industries. Paroc has operations in 13 countries, including seven production plants in five countries.

Toledo, Ohio-based Owens Corning also develops insulation, roofing and fiberglass materials used in commercial and residential buildings. The Paroc acquisition is intended to help the buyer expand its mineral wool product offering and to grow its presence in the European insulation market. Owens Corning reported $5.7 billion in sales in the year 2016.

Founded in 1981, CVC is a private equity and investment firm based in London. The PE firm has raised more than $65 billion in capital commitments since its inception and has completed over 300 investments. In June, CVC raised $18 billion in capital commitments to pursue U.S. and European investments.

CVC has remained active across the middle-market, and is currently invested in a variety of companies such as BJ’s Wholesale Club and Petco. The firm recently acquired two financial software businesses from Actua Corp. (Nasdaq: ACTA); previously bought bottle packaging company Anchor Glass Container Corp.; and then assisted portfolio company Avast Software to acquire AVG Technologies NV (NYSE: AVG) for $1.3 billion.

J.P. Morgan Securities LLC (NYSE: JPM) and Lazard (NYSe: LAZ) are serving as financial advisers to Owens Corning, and Jones Day is serving as legal counsel with support from Calfee Halter & Griswold LLP and Krogerus. Bank of America Merrill Lynch (NYSE: BAC) and Danske Bank are serving as financial advisers to CVC Capital Partners, while Freshfields Bruckhaus Deringer LLP and Avance Attorneys Ltd. are acting as legal counsel.

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