Huntsman, Woodlands, Texas, USA, announced the acquisition of Demilec, a subsidiary of Sun Capital Partners Demilec is a North American-leading manufacturing and distribution company for sprayed polyurethane foam (SPF) insulation systems. The SPF system is suitable for residential and commercial applications. According to the terms of the agreement, Huntsman will use available working capital to pay 350 million in cash transactions. USD. The transaction is expected to close by the end of the second quarter of 2018.
Demilec's annual revenue is approximately $170 million, and it has two plants that can formulate a complete MDI based on the SPF formula. The two plants are located in Arlington, Texas, and Boi Bran, Quebec, Canada, directly to the distributors. And sales by distributors. Demilec specializes in the study of closed-cell and open-cell resin formulations. It is dedicated to producing environmentally friendly products that are renewable and recyclable, have high biocompatibility, and can reduce energy consumption through efficient thermal insulation.
Tony Hankins, president of Huntsman Polyurethanes Division, commented on the acquisition: “For more than 30 years, Demilec has been a pioneer in MDI SPF insulation and coating technology and has established itself among many architects, builders and designers in the industry. A strong market reputation. Both Demilec and the entire SPF industry have achieved strong double-digit growth in limited quantities, and as people worldwide are increasingly concerned about energy efficiency, their superior insulation technology will make This growth will continue. After the transaction is over, the Demilec team will continue to be fundamental to the continued development of the integrated business, and we are rapidly establishing a North American platform and actively expanding our business to the international market.
Peter Huntsman, chairman, president and chief executive officer, further commented: “This reinforced purchase is a very suitable core strategy for our transfer to downstream industries. Demilec has achieved significant synergies with our existing polyurethane business integration. It also drove a large number of upstream polymer MDIs into a special spray foam system, providing a sharp rise and very stable profit margin. The EBITDA (profit before tax depreciation and amortization) profit margin of this integrated business will reach over 25%, and To achieve double-digit growth. '