Mississauga, Ontario – Icynene, the Canadian-headquartered manufacturer and distributor of one-step spray foam insulation products, is to acquire Houston, Texas-based Lapolla in an all-cash deal worth $160 million.
Icynene is owned by San Francisco-based private equity business FFL Partners.
Lapolla’s president and CEO Doug Kramer will remain with the company. ‘During the past several months, Lapolla conducted an extensive review of strategic opportunities to enhance value for our stockholders,’ he said. ‘Lapolla is happy to have reached this agreement with Icynene, which delivers a significant premium to Lapolla’s stockholders.’
The deal will create a company that serves the international market for new residential, commercial, remodelling and specialty non-construction insulation projects.
‘Together, as one company, Lapolla and Icynene will have more resources to fully serve our respective customers and positions both companies for long-term, sustained growth,’ said Mark Sarvary, Icynene’s president and CEO.
It’s been a busy start for Sarvary, who assumed the role at Icynene in September; previously, he had a similar position until there were board changes at Tempur Sealy. In a second deal, the company’s Belgium-based subsidiary Icynene Europe has acquired polyurethane insulation distributor Isolat France. The French company was the first to obtain CSTB certification for floors and walls.
‘The acquisition reinforces Icynene’s commitment to growth within the European market with direct sales to contractors,’ said Bertrand Lauret, managing director of Icynene Europe, Africa and the Middle East. ‘Operating across two dozen European countries, Icynene Europe will now have a comprehensive product mix of open- and closed-cell spray foam insulation products that we will manufacture in Europe.’
Sarvary added, ‘Europe is a key strategic focus for Icynene, and we will continue to pursue growth within the region, both organically and with targeted acquisitions.’