On December 5, Huntsman announced that it had agreed to acquire Icynene-Lapolla, a leading manufacturer and distributor of residential and commercial spray polyurethane foam (SPF) insulation systems in North America, from a subsidiary of FFL Partners, LLC.
Lcynene-Lapolla has annual revenues of approximately $ 230 million and has two manufacturing plants in Houston, Texas and Mississauga, Ontario. According to the terms of the agreement, Huntsman will pay $ 350 million. This cash will be funded by available liquidity and customary transaction adjustments will be made in the form of all-cash transactions. Based on the adjusted EBITDA estimates for the entire year of 2019, the purchase price represents approximately 10 times the adjusted EBITDA multiple, or approximately 7 times the adjusted EBITDA price for synergy. The transaction is expected to be completed in the first half of 2020.
Commenting on the acquisition, Tony Hankins, President of Huntsman Polyurethanes, said: "I am very pleased that Icynene-Lapolla joined our downstream high-growth MDI polyurethane insulation business. Icynene-Lapolla is recognized by architects, builders and contractors The leader in the manufacture and supply of high-performance, energy-efficient building envelope solutions. Almost half of the energy consumption is used for heating and cooling of buildings, so it is critical to choose insulation materials. Spray polyurethane foam is the most effective insulation material. The combination of Icynene-Lapolla and its polyurethane spray foam product line and reflective roof coatings, as well as the combination of our polyurethane spray foam business Demilec that we acquired in 2018, will greatly strengthen our energy-saving insulation business and provide customers with unparalleled choices , Accelerating the globalization of our spray foam technology. "Huntsman Chairman, President and CEO Peter Huntsman further commented:" As the demand for energy efficiency in residential and commercial buildings continues to grow, the combination of these two companies Will provide Huntsman with the world ’s largest Shoot foam technology, raw materials and affiliates integration. This is the size and type when we improve profitability, transfer to the downstream, to reduce dependence on a single product or application, will continue to increase the company's downstream assets.