March 13, 2018 - Huntsman Corporation announces the acquisition of Demilec, a North American-leading manufacturer and distributor of spray-on polyurethane foam (SPF) insulation systems for Sun Capital Partners' subsidiaries, which is suitable for residential and commercial applications.
Demilec has annual revenues of approximately $170 million. Two manufacturing facilities in Arlington, Texas, and Bos Brown, Quebec, produce a full set of MDI-based SPF formulations that sell directly to applicators and distributors. Demilec Focused on closed-cell and open-cell solutions, as well as renewable and recyclable products, these products are environmentally friendly and reduce energy consumption through efficient thermal insulation.
According to the agreement, Huntsman will pay $350 million in cash transactions. According to 2018 annual EBITDA, the purchase price is nearly 11.5 times or 7.5 times. The transaction is expected to close by the end of the second quarter of 2018.
Tony Hankins, president of Huntsman Polyurethanes Division, said: “Demilec has over 30 years of technical experience in MDISPF insulation and coating technology and has gained a good market reputation among engineers, architects and designers. Demilec and the entire SPF industry Achieving strong double-digit growth due to increased energy efficiency and excellent thermal insulation. After the transaction is completed, the Demile team will continue its integration business as we are rapidly establishing our North American platform and actively expanding into the international market. .
Peter Huntsma further stated: 'This bolted acquisition is very much in line with our core strategy of moving downstream. Demilec's integration with our Polyurethanes business creates a synergistic effect. By incorporating the upstream polymer MDI into the spray foam system, we have achieved a higher level of stability. Profit, EBITDA margin will reach more than 25%, and achieve double-digit growth.