THE WOODLANDS, Texas,
March 13, 2018 /PRNewswire/ --
Huntsman Corporation (NYSE: HUN) today announced the acquisition of
Demilec, one of North America's
leading manufacturers and distributors of spray polyurethane foam
(SPF) insulation systems for residential and commercial
applications, from an affiliate of Sun Capital Partners, Inc.
Demilec has annual revenues of approximately $170 million and two manufacturing facilities
located in Arlington, Texas and
Boisbriand, Quebec where they
produce a full suite of MDI based SPF formulations which they
market directly to applicators as well as through distributors.
Demilec specializes in both closed cell and open cell formulations,
with a focus on products with renewable and recyclable content that
are eco-friendly, bio-preferred and reduce energy consumption
through highly efficient insulation properties.
Under terms of the agreement, Huntsman will pay $350 million in an all-cash transaction, funded
from available liquidity. Based upon full year 2018 EBITDA
estimates, this represents a purchase price multiple of
approximately 11.5x or 7.5x, pro forma for synergies. The
transaction is expected to close by the end of second quarter
2018.
Commenting on the acquisition, Tony
Hankins, President of Huntsman's Polyurethanes division,
said: "Demilec has pioneered MDI SPF insulation and coating
technologies for over 30 years, building a strong market reputation
with architects, builders and designers. Demilec and the entire SPF
industry has delivered strong double digit growth, which we expect
to be sustained as their technology provides outstanding insulation
performance in a world which is increasingly concerned with
improving energy efficiency. The Demilec team will continue to be
fundamental to the ongoing success of the integrated business after
the transaction has closed, as we rapidly build our North American
platform and aggressively expand the business into international
markets."
Peter Huntsman, Chairman,
President and CEO further commented: "This bolt-on acquisition
is a great fit to our core strategy to move downstream.
The integration of Demilec into our Polyurethanes business
offers significant synergies and delivers substantially higher and
very stable margins by pulling through large amounts of upstream
polymeric MDI into specialized spray foam systems. This integrated
business will have greater than 25% EBITDA margins and double digit
growth."
About Huntsman:
Huntsman Corporation is a publicly
traded global manufacturer and marketer of differentiated and
specialty chemicals with 2017 revenues of approximately
$8 billion. Our chemical
products number in the thousands and are sold worldwide to
manufacturers serving a broad and diverse range of consumer and
industrial end markets. We operate more than 75 manufacturing,
R&D and operations facilities in approximately 30 countries and
employ approximately 10,000 associates within our four distinct
business divisions. For more information about Huntsman, please
visit the company's website at
www.huntsman.com.
Social Media:
Twitter:
www.twitter.com/Huntsman_Corp
Facebook:
www.facebook.com/huntsmancorp
LinkedIn:
www.linkedin.com/company/huntsman
Forward-Looking Statements:
Statements in this
release that are not historical are forward-looking statements.
These statements are based on management's current beliefs and
expectations. The forward-looking statements in this release are
subject to uncertainty and changes in circumstances and involve
risks and uncertainties that may affect the company's operations,
markets, products, services, prices and other factors as discussed
in the Huntsman companies' filings with the U.S. Securities and
Exchange Commission. Significant risks and uncertainties may relate
to, but are not limited to, volatile global economic conditions,
cyclical and volatile product markets, disruptions in production at
manufacturing facilities, reorganization or restructuring of
Huntsman's operations, the ability to implement cost reductions and
manufacturing optimization improvements in Huntsman businesses, and
other financial, economic, competitive, environmental, political,
legal, regulatory and technological factors. The company assumes no
obligation to provide revisions to any forward-looking statements
should circumstances change, except as otherwise required by
applicable laws.
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SOURCE Huntsman Corporation