Huntsman acquires Demilec in $350M deal
Huntsman Corporation announced the acquisition of Demilec, a manufacturer and distributor of spray polyurethane foam insulation systems for residential and commercial applications, from an affiliate of Sun Capital Partners, Inc. Demilec has annual revenues of approximately $170M and two manufacturing facilities located in Arlington, Texas and Boisbriand, Quebec where they produce a full suite of MDI based SPF formulations which they market directly to applicators as well as through distributors. Demilec specializes in both closed cell and open cell formulations, with a focus on products with renewable and recyclable content that are eco-friendly, bio-preferred and reduce energy consumption through highly efficient insulation properties. Under terms of the agreement, Huntsman will pay $350M in an all-cash transaction, funded from available liquidity. Based upon full year 2018 EBITDA estimates, this represents a purchase price multiple of approximately 11.5x or 7.5x, pro forma for synergies. The transaction is expected to close by the end of second quarter 2018.