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MOSCOW (MRC)
-- Huntsman Corp. has signed an agreement to buy polyurethane spray foam maker
Icynene-Lapolla for USD350M in cash, said Plasticsnews.
The
deal should close in the first half of 2020. The deal expands Huntsman's
footprint in the growing North American spray foam market. It also gains more
spray foam technology to go with its Demilec business.
Mississauga,
Ontario-based Icynene-Lapolla has annual sales of around USD230M, putting the
price at about 10 times earnings before interest, taxes, depreciation and
amortiation.
Tony Hankins, president of Huntsman's polyurethanes
division, said the combination of Icynene-Lapolla with its PU spray foam product
range and reflective roof coatings, with Huntsman's Demilec PU spray foam
business will significantly strengthen Huntsman's energy-saving insulation
business.
"This combination of companies will provide Huntsman with the
largest global array of spray foam technology. This is the size and type of
downstream assets that we will continue to add to our company," CEO Peter
Huntsman said. Huntsman is based in The Woodlands, Texas.
Lapolla Industries Inc. was founded in 2005 by Doug Kramer, who became the
CEO of Icynene-Lapolla after his firm combined with Icyene Inc. in 2018.
Huntsman bought Demilec in March 2018 for $350M.
Huntsman management believes that spray foam will be an important business
group. These businesses typically have higher margins and more consistent sales
than cyclical commodities like diisocyanates and polyols.
As MRC informed earlier, in August 2019, Huntsman Corp, the US chemicals
group, sold two of its businesses to Thailand-based petrochemicals company
Indorama Ventures for more than USD2bn.
According to MRC's ScanPlast report,
Russia's estimated PET consumption dropped in September 2019 by 10% year on
year, totalling 58,210 tonnes. Overall, 551,320 tonnes of PET was processed in
Russia in the first nine months of 2019, up 9% year on year.
Huntsman
Corporation is a publicly traded global manufacturer and marketer of
differentiated and specialty chemicals with 2017 revenues of more than USD8
billion. Its chemical products number in the thousands and are sold worldwide to
manufacturers serving a broad and diverse range of consumer and industrial end
markets. The company operate more than 75 manufacturing, R&D and operations
facilities in approximately 30 countries and employ approximately 10,000
associates within its four distinct business divisions. |
