Specialty chemicals behemoth, Huntsman Corporation, has recently announced the acquisition of Demilec Inc., a leading player in North America spray polyurethane foam (SPF) market, from an affiliate of Sun Capital Partners. Inc. Reportedly, under the terms of the transaction, Huntsman is expected to pay USD 350 million in an all-cash deal, that is slated to close by the end of Q2 2018.
Commenting on the deal, the President of Huntsman’s polyurethanes division, Tony Hankins, mentioned in a statement that Demilec has established its MDI SPF insulation & coating technologies for more than 30 years now and has developed a strong market reputation with builders, architects, and designers. He further added that Demilec in tandem with the global SPF industry has delivered a robust double-digit-growth rate, which the company will continue to maintain by providing outstanding technology and high-performance products.
Having achieved the desired feat in the North America SPF industry, Huntsman with Demilec’s acquisition further plans to aggressively expand its business platform in international markets, cite experts.
For the record, Demilec, with the latest financial year annual sales over USD 170 million is North America’s leading distributor and manufacture of SPF insulation systems for residential & commercial applications. The company is further making prominent headways into the regional spray polyurethane foam industry by introducing eco-friendly and energy efficient products, say industry analysts.
Sources reveal that Demilec owns two manufacturing facilities located in Boisbriand, Quebec, and Arlington, Texas, that produce MDI-based SPF formulations. These are sold by the distributors and are marketed directly to the applicators. Demilec’s two facilities are reported to manufacture both open-cell and closed-cell SPF formulations.
Demilec emphasizes on manufacturing eco-friendly products with recyclable and renewable content, says Hunstman in a statement.
Peter Huntsman, President, Chairman, and CEO of Huntsman Corp. was quoted stating that Demilec’s purchase deal is a great fit for the company’s core strategy to move downstream. The integration of Demilec’s capabilities into its polyurethanes business is likely to deliver the SPF industry with significant synergies.