Huntsman acquires Icynene-Lapolla for all-cash payment of $350M
Huntsman announces its agreement to acquire Icynene-Lapolla, a North American manufacturer and distributor of spray polyurethane foam insulation systems for residential and commercial applications, from an affiliate of FFL Partners, LLC. Icynene-Lapolla has annual revenues of approximately $230M with two manufacturing facilities located in Houston, Texas and Mississauga, Ontario. Under terms of the agreement, Huntsman will pay $350M, subject to customary closing adjustments, in an all-cash transaction funded from available liquidity. Based on full year 2019 adjusted EBITDA estimates, the purchase price represents an adjusted EBITDA multiple of approximately 10 times, or approximately 7 times adjusted EBITDA pro forma for synergies. The transaction is expected to close in the first half of 2020.