Huntsman Corporation announced that it has completed the acquisition of Icynene-Lapolla, a leading manufacturer and distributor of spray polyurethane foam (SPF) insulation systems for residential and commercial applications.
Huntsman said in their press release that it has acquired the business from an affiliate of FFL Partners, LLC, for $350 million, in an all-cash transaction.
Huntsman said that the combination of Icynene-Lapolla with Demilec, the SPF business Huntsman acquired in 2018, will create the world’s leading supplier of spray foam products used to insulate commercial and residential structures.
The acquisition will further strengthen the company’s portfolio of leading energy-saving insulation applications and technologies, providing customers with an unmatched product offering. Further, it will accelerate the globalization of the combined SPF business by leveraging Huntsman’s extensive international network of systems houses.
The acquisition will generate substantial synergies as a result of Huntsman’s ability to pull through significant volumes of polyols and lower margin upstream polymeric MDI into the higher margin and growing specialized SPF systems.
Tony Hankins, President of Huntsman’s Polyurethanes division, commented on the acquisition: “I am excited about the opportunities that lie ahead, now that Icynene-Lapolla is joining our high-growth MDI urethanes insulation business. Together with Demilec, our existing SPF business, we will create a world-leading SPF platform, providing highly innovative, energy-saving solutions for residential and commercial property owners alike.”
Peter Huntsman, Chairman, President and CEO added: “SPF is a highly attractive growth business and Icynene-Lapolla is widely recognized as a leading player in the industry. Icynene-Lapolla will strengthen our move downstream and provide further impetus to the globalization of our SPF technology.”
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