Media, Pennsylvania – US flexible foamers FXI and Innocor are to merge, creating a polyurethane company that can supply customers in the transport, bedding, furniture, medical and other sectors.
Private equity company One Rock Capital Partners controls FXI, and Bain Capital is the majority shareholder in Innocor. Neither company would reveal financial details, or share information about their ownership stakes in the combined company.
FXI has 16 manufacturing and distribution facilities in the US, and employs 2000. Innocor employs about 1800, and has 21 factories and distribution centres.
Harold Early, who is currently CEO at FXI, will head the combined firm. He said: ‘We will be able to offer customers enhanced manufacturing and R&D capabilities and reduced delivery times through of our enhanced footprint.’
Bill Redmond, Innocor’s CEO, will sit on the board of the new company, which has yet to be named.
The transaction, which is debt financed, is expected to close in the second half of 2019 subject to regulatory approvals.
According to the company’s websites, there is very little geographical overlap between the plants. There are only two states where there are plants in close proximity: California and Indiana.
In California, FXI’s plant in Orange is around 60 miles (90km) from Innocor’s plant in San Bernadino. In Indiana, Innocor’s plant in Elkhart is 66 miles away from FXI’s plant in Fort Wayne, and about the same distance away from FXI’s plant in Auburn.
FXI has plants in: Auburn, IN; Cornelius, NC; Corry, PA; Aurora, CO; East Rutherford, NJ; Fort Wayne, IN; Houston, TX; Kent, WA; Omaha, NE; Orange, CA; Portland, OR; San Leandro, CA; Santa Teresa, NM; and, Tupelo, MS; Juarez, Chihuahua, Mexico and Cuautitlan, Mexico City.
Innocor plants are located at: Red Bank, NJ; San Bernardino, CA; Miami, FL; Dublin, GA; Dubuque, IA; West Chicago, IL; Elkhart, IN; Newburyport, MA; Lebanon, MO; Baldwyn, MS; Coldwater, MS; Tupelo, MS; High Point, NC; Spencerville, OH; Archbald, PA; Dunmore, PA; Chattanooga, TN; Brenham, TX; Terrell, TX; Longview, WA; and Portage, WI.