Huntsman (The Woodlands, Texas / USA; www.huntsman.com) is to acquire North American spray PU foam (SPF) insulation manufacturer Icynene-Lapolla (Houston, Texas / USA; www.icynene-lapolla.com) for USD 350m (EUR 314m). With annual revenues of approximately USD 230m, Icynene-Lapolla manufactures and distributes SPF insulation systems for residential and commercial applications. It has two manufacturing facilities, located in Houston, Texas / USA and Mississauga, Ontario / Canada. Huntsman is acquiring the business from an affiliate of private equity company FFL Partners (San Francisco, California / USA; www.fflpartners.com).

The deal expands Huntsman’s downstream footprint in SPF insulation. “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 globalisation of our spray foam technology,” said Tony Hankins, president of Huntsman's PU division.

Peter Huntsman, Huntsman’s CEO, added: “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. 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 the USD 350m purchase price represents an adjusted EBITDA multiple of approximately 10 times. The transaction is expected to close in the first half of 2020.