Huntsman announces acquisition of Icynene-Lapolla to expand its downstream range of spray-sprayed polyurethane foam insulation

December 5, Huntsman announced that it had agreed to acquire Icynene-Lapolla, north America's leading manufacturer and distributor of residential and commercial spray polyurethane foam (SPF) insulation systems, from FFLPartners, a subsidiary of LLCIcynene-Lapolla has annual revenues of about $230 million and has two manufacturing facilities in Houston, Texas, and Mississorga, OntarioUnder the terms of the agreement, Huntsman will pay $350 million, which will be funded by available liquidity and adjusted to the usual deal in the form of an all-cash dealBased on the full-year 2019 adjusted EBITDA estimate, the purchase price represents an adjusted EBITDA multiple of approximately 10 times or approximately 7 times the adjusted EBITDA price for synergiesThe deal is expected to close in the first half of 2020Commenting on the acquisition, the President ofHuntsman's Polyurethane business said, "I am pleased that Icynene-Lapolla has joined our downstream, high-growth MDI polyurethane insulation businessIcynene-Lapolla is a manufacturing and supply leader in high-performance, energy-efficient building enclosure solutions recognized by architects, builders and contractorsAlmost half of the energy consumed is used for heating and cooling of buildings, so choosing insulation is criticalSpraying polyurethane foam is the most efficient insulation materialThe combination of Icynene-Lapolla and its polyurethane spray foam product line and reflective roof coatings, as well as our 2018 acquisition of the polyurethane spray foam business Demilec, will greatly enhance our energy-efficient insulation business and accelerate the globalization of our spray foam technology while providing customers with unparalleled choicesChairman, President and CEO of 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 integration of jet foam technology, raw materials and associates." This is the size and type of downstream assets that we will continue to add to the company as we increase profit margins, move downstream, and reduce reliance on a single product or application"