Huntsman has agreed to acquire Icynene-Lapolla, a distributor and manufacturer of spray polyurethane foam (SPF), from an affiliate of FFL Partners for $350 million cash. The transaction is expected to close in the first half of 2020.

Icynene-Lapolla has annual revenues of around $230 million and manufacturing facilities in Houston, Texas, USA, and Mississauga, Ontario, Canada. California-based private equity group FFL Partners bought Icynene in November 2014, later merging it with Lapolla in November 2017.

 “Icynene-Lapolla is well recognized by architects, builders and contractors as a market leader in the manufacture and supply of high-performance, energy-efficient building envelope solutions,” said Tony Hankins, president of Huntsman’s Polyurethanes division.

“The combination of Icynene-Lapolla, with its SPF product range and reflective roof coatings, with Demilec, the SPF business we acquired in 2018, will significantly strengthen our energy-saving insulation business and provide customers with an unmatched offering of choice while accelerating the globalization of our spray foam technology.”

Huntsman took over Demilec in 2018 and has also set up a polyurethane (PU) systems house in Dubai to serve as a regional headquarters for the Demilec business along with other PU customers. 

Chairman, president and CEO Peter Huntsman added that Icynene-Lapolla is the size and type of downstream assets that it will continue to add as it strengthens margins, moves downstream and becomes less reliant on a single product or application.