THE WOODLANDS, Texas — Huntsman Corporation announced its agreement to acquire Icynene-Lapolla, a leading North American manufacturer and distributor of spray polyurethane foam (SPF) insulation systems for residential and commercial applications, from an affiliate of FFL Partners LLC.
Icynene-Lapolla has annual revenues of approximately $230 million with two manufacturing facilities located in Houston, Texas and Mississauga, Ontario. Under terms of the agreement, Huntsman will pay $350 million, subject to customary closing adjustments, in an all-cash transaction funded from available liquidity. The transaction is expected to close in the first half of 2020.
“I am delighted that Icynene-Lapolla is joining our downstream, high-growth MDI urethanes insulation business,” said Tony Hankins, president of Huntsman's polyurethanes division. “The combination of Icynene-Lapolla, with its SPF product range and reflective roof coatings, with Demilec, the SPF business we acquired in 2018, will significantly strengthen our energy-saving insulation business and provide customers with an unmatched offering of choice while accelerating the globalization of our spray foam technology.”
Peter Huntsman, chairman, president and CEO, said as the demand for energy efficiency continues to grow in both residential and commercial construction, the acquisition will provide Huntsman with the largest global array of spray foam technology, integration of raw materials and associates.
“This is the size and type of downstream assets that we will continue to add to our company as we strengthen margins, move downstream and be less reliant on a single product or application,” Huntsman said.