Huntsman Corp., The Woodlands, Texas, has announced its agreement to acquire Icynene-Lapolla, Houston, a leading North American manufacturer and distributor of spray polyurethane foam insulation systems for residential and commercial applications; Huntsman will acquire Icynene-Lapolla from an affiliate of FFL Partners LLC.
Icynene-Lapolla has annual revenues of about $230 million with two manufacturing facilities located in Houston 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 during the first half of 2020.
“As the demand for energy efficiency continues to grow, both in residential and commercial construction, this combination of companies will provide Huntsman with the largest global array of spray foam technology, integration of raw materials and associates,” says Peter Huntsman, chairman, president and CEO of Huntsman. “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.”
