THE WOODLANDS, Texas,
April 23, 2018 /PRNewswire/ -- Huntsman Corporation
(NYSE: HUN) today announced that it has completed the purchase of
Demilec, one of North America's
leading manufacturers and distributors of spray polyurethane foam
(SPF) insulation systems. Huntsman acquired the business from an
affiliate of Sun Capital Partners, Inc., for $350 million, subject to customary working
capital adjustments, in an all-cash transaction which was funded
from available liquidity.
The acquisition of Demilec is aligned with Huntsman's stated
strategy to grow its downstream polyurethanes business and leverage
its global platform to expand Demilec's portfolio of SPF
formulations into international markets. The acquisition will
generate substantial synergies as a result of Huntsman's ability to
pull through significant volumes of lower margin upstream polymeric
MDI into the higher margin and growing specialized SPF
systems.
Demilec has annual revenues of approximately $170 million and two manufacturing facilities
located in Arlington, Texas and
Boisbriand, Quebec where it
produces a full suite of MDI based SPF formulations which it
markets 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.
Peter Huntsman, Chairman,
President and CEO commented on the acquisition: "This is a great
fit for our downstream growth strategy. We are excited to have
Demilec become part of our growing Polyurethanes business. We
expect to integrate the business fully by the end of this year when
we expect to enjoy integrated SPF EBITDA margins greater than
25%."
Tony Hankins, President of
Huntsman's Polyurethanes division, added: "Our approach to
integration will ensure that the Demilec team remains focused on
meeting the needs of their customers while benefiting from access
to Huntsman's raw material supply, innovation capabilities and
established global network."
About Huntsman:
Huntsman Corporation is a publicly
traded global manufacturer and marketer of differentiated and
specialty chemicals with 2017 revenues more than $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