The Woodlands, Texas – Huntsman is to buy spray polyurethane foam insulation specialist Demilec from part of Sun Capital Partners.
Huntsman is paying $350 m in an all-cash deal. This is expected to close by the end of the second quarter of 2018.
In the lastest financial year, Demilec had annual revenues of about $170 m.
Its two manufacturing facilities, located in Arlington, Texas and Boisbriand, Quebec, produce a full suite of MDI-based SPF formulations. These are sold via distributors, and marketed directly to applicators.
It makes both closed-cell and open-cell SPF formulations. The company focuses on eco-friendly products with renewable and recyclable content, said Huntsman.
‘Demilec has pioneered MDI SPF insulation and coating technologies for more than 30 years, building a strong market reputation,’ said Tony Hankins, president of Huntsman’s polyurethanes division.
‘Demilec and the entire SPF industry has delivered strong double-digit growth, which we expect to be sustained.’
He added: ‘Their technology provides outstanding insulation performance in a world which is increasingly concerned with improving energy efficiency.’
At the end of February, while reviewing MDI prices, Peter Huntsman told investors that his firm was interested in acquisitions that will improve margins, with consistent earnings that grow faster than GDP.