Huntsman Corp. recently announced that it has completed its acquisition of Icynene-Lapolla, a North American manufacturer and distributor of spray polyurethane foam (SPF) insulation systems for residential and commercial applications. Huntsman acquired the business from an affiliate of FFL Partners, LLC for $350 million, subject to customary closing adjustments, in an all-cash transaction funded from available liquidity.

The acquisition of Icynene-Lapolla is reportedly aligned with Huntsman’s strategy of growing its downstream polyurethanes business. Achieving annual revenues of approximately $230 million, Icynene-Lapolla has two manufacturing facilities (Houston, Texas, and Mississauga, Ontario), where it produces a range of MDI-based SPF formulations and reflective roof coatings.

“I am excited about the opportunities that lie ahead, now that Icynene-Lapolla is joining our high-growth MDI urethanes insulation business,” said Tony Hankins, president of Huntsman’s Polyurethanes division. “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.”

“SPF is a highly attractive growth business and Icynene-Lapolla is widely recognized as a leading player in the industry,” said Peter Huntsman, chairman, president, and CEO. “Icynene-Lapolla will strengthen our move downstream and provide further impetus to the globalization of our SPF technology. The purchase price represents an adjusted EBITDA multiple of approximately 10 times, or approximately 7 times adjusted EBITDA, pro forma for synergies. The combined business is now approaching $500 million in revenues and by the end of 2021 with synergies we see the SPF business exceeding $100 million in EBITDA.”

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