Huntsman Buys CVC Thermoset Specialties

Huntsman has agreed to buy CVC Thermoset Specialities, a North American specialty chemical manufacturer, for $300 million in cash. CVC makes highly specialized toughening, curing and other additives used in various composite, adhesive and coatings applications across the aerospace, automotive and industrial markets.

The transaction, which remains subject to the usual closing conditions, is anticipated to complete around mid-2020.

Part of Emerald Performance Materials, which is majority owned by affiliates of private equity firm American Securities, CVC has annual revenues of about $115 million and operates two plants in Akron, Ohio and Maple Shade, New Jersey.

“The acquisition of CVC Thermoset Specialties brings valuable complementary technology breadth to our Advanced Materials portfolio and its unique products will make systems using our class-leading epoxy-based materials even tougher, stronger, and more durable,” said Scott Wright, president of Huntsman’s Advanced Materials division.

 “In addition to strengthening our position in North America, Huntsman will use our existing asset footprint and routes to market in Europe and Asia to rapidly grow and globalize CVC Thermoset Specialties’ exciting and complementary product range. This acquisition will further improve our ability to create differentiation in our customers’ applications, in particular through our strong formulations business,” Wright said

Peter Huntsman, chairman, president and CEO of Huntsman, added that “significant synergies” between the businesses are expected within two years.

Late last month, Huntsman closed its purchase of Icynene-Lapolla, a leading North American manufacturer and distributor of spray polyurethane foam (SPF) insulation systems. Huntsman said the combination of Icynene-Lapolla with Demilec, the SPF business it acquired in 2018, will create the world’s leading supplier of spray foam products used to insulate commercial and residential structures.

“The combined business is now approaching $500 million in revenues and by the end of 2021 with synergies we see the SPF business exceeding $100 million in EBITDA,” said Huntsman.

At facilities in Texas, USA, and Ontario, Canada, Icynene-Lapolla produces a full range of MDI-based SPF formulations and reflective roof coatings, which it markets directly to applicators as well as through distributors.