Huntsman announced the acquisition of Icynene-Lapolla, expanding its downstream spray polyurethane foam insulation product range.

In December 5th, Huntsman Corp announced that it had agreed to acquire the leading residential and commercial spray polyurethane foam (SPF) insulation system manufacturer and distributor Icynene-Lapolla in North America from a FFL Partners LLC subsidiary With an annual revenue of about $230 million, Icynene lapolla has two manufacturing facilities in Houston, Texas, and Mississauga, Ontario Under the terms of the agreement, Huntsman will pay US $350 million, which will be funded by available liquidity, and the customary closing adjustments will be made in the form of a full cash transaction Based on the adjusted EBITDA estimates for the full year 2019, the purchase price represents about 10 times the adjusted EBITDA multiple, or about 7 times the adjusted EBITDA price obtained for synergies The deal is expected to be completed in the first half of 2020 Commenting on the acquisition, the president of Huntsman's Polyurethane business said: "I'm glad that Icynene lapolla has joined our downstream high growth MDI polyurethane insulation business Icynene lapolla is a leader in the manufacture and supply of high-performance, energy-efficient building envelope solutions recognized by architects, builders and contractors Almost half of the energy consumption is used for heating and cooling of buildings, so the selection of thermal insulation materials is very important Spray polyurethane foam is the most effective insulating material Icynene-Lapolla and its polyurethane spray foam series and reflective roof coating combination, and our combination of polyurethane foam spray business Demilec acquired in 2018 will greatly enhance our energy saving and insulation business and provide customers with incomparable choices, accelerating our global integration of foam technology at the same time Huntsman, chairman, President and chief executive officer further commented: "with the growing demand for energy efficiency in residential and commercial buildings, the combination of the two companies will provide Huntsman with the largest global production of spray foam technology, raw materials and associated companies This is the size and type of downstream assets that we will continue to add to the company as we increase profitability, move downstream, and reduce our reliance on a single product or application "