Mergers & Acquisitions
March 3, 2020
Future Foam Announcement on New Facility Acquisitions
On March 2,2020, Future Foam acquired polyurethane foam pouring facilities in Tupelo
Mississippi, Kent, Washington, Elkhart, Indiana, and a foam fabrication facility in Kent,
Washington. This is a very exciting event at Future Foam, and we are thrilled to take
over the operations and begin serving these markets.
Future Foam is a family-owned company that has been making polyurethane foam since
1958. We pride ourselves on customer service, quality and innovation. We are a team
of innovators guided by a passion to continually develop customer-driven solutions. We
employ, manufacture and invest where our customers conduct their business. We attract
and retain the best in the industry by providing a great place to work. With the addition of
these 4 facilities, we have 30 facilities in the United States, 1 in Europe, and 1 in China.
Ow 2 Million+ square feet of manufacturing and warehousing space is powered by more
than 2,000 associates, with an average tenure of 10 years.
We have foam pouring, molding, fabrication. and converting operations that provide
solutions that range from providing raw materials, OEM components, finished goods
and fulfillment services to our customers.
Our polyurethane foam product offering includes visco-elastic memory, conventional
ether, engineered ether and ester, high resiliency, molded, rebonded, and specialty
comfort foams along with cushioning products for carpet and flooring.
We are one of the leading foam recyclers in the world. Our Industrial by-product recyling
volume used to make rebond foam offsets and is roughly equivalent to our consumption
of chemical raw materials used in our foam production.
March 2, 2020
Chemical M&A Forecast
Deloitte Global Report Forecasts Robust M&A Activity for Chemical Industry in 2020
The Deloitte Global Chemical Industry Mergers and Acquisitions Outlook (2020 Outlook) expects robust merger and acquisition (M&A) activity to continue throughout the coming year, despite the trade and geopolitical tensions, and slowing economies that shape today’s global economic uncertainty.
“Over the past few years we watched attentively as the chemical industry maintained healthy M&A activity levels despite the many challenges,” says Bart Cornelissen, Energy & Resources Leader and Managing Partner of Monitor Deloitte in the Middle East. “The focus has remained on growth and profitability through it all. It seems that the chemical industry has become more comfortable operating in the uncertainty which may now be considered the ‘new normal’. Given the drive by GCC oil and gas companies towards downstream, we expect to see inorganic growth as essential to deliver upon their strategies.”
One trend the 2020 Outlook sees shaping the M&A landscape is the continued integration of traditional oil and gas companies with petrochemical firms, as chemical production is becoming an increasingly important end-use. Another trend is increased sustainability concerns that are changing how chemical companies view their business models, leading to non-traditional alliances, partnerships, and joint ventures.
Private equity has experienced a resurgence since 2018 as an important component of acquisition transactions. Private equity groups are expected to play a renewed critical role in chemicals M&A by providing capital, acquiring assets, and building companies through consolidation.
“The global economy appears able to support continued M&A activity, and the fundamentals for M&A activity in the chemical industry in particular continue to be strong as well,” says Cornelissen. “Companies are searching for growth and a larger global footprint, along with efficiency in their operations and innovation in their solutions. There are many opportunities to create value through M&A.”
“The ongoing monetization of domestic assets in the Middle East will continue to support the diversification of portfolios to international markets, with the benefit of further securing long term product placement,” said Lawrence Hunt, Partner, M&A Consulting, Deloitte Middle East.
The following are snapshots of M&A activity by geography, as outlined in the 2020 Outlook:
- The United States remains the most active market for M&A transactions. Foreign buyers remain very interested in US assets, and portfolio management will continue to be an important theme for US companies.
- China is home to the world’s largest base chemicals capacity, and given the current adjustments in the Chinese economy there may be acquisition opportunities for foreign buyers, although not at a bargain.
- In the United Kingdom, Brexit uncertainty undermines business confidence, and M&A activity has been relatively flat. Expect continued caution, even though debt is inexpensive and potential players have cash to deploy.
- In Germany, growing concerns around a possible economic downturn could lead to a mild slowdown in M&A activity, especially as regulatory scrutiny has tightened significantly in Europe.
- India has a strong long-term growth outlook and has made a variety of tax and regulatory reforms friendly to the chemical industry. The industry is also enjoying increased domestic consumption across all sub-sectors.
- In the Netherlands, the economic climate remains strong, debt is inexpensive, and many companies have had strong earnings in recent years. However, disappointing earnings and uncertainty could challenge chemical M&A activity in the Netherlands.
- In Japan, many leading chemical companies saw a downturn in 2019 for a variety of reasons. Nonetheless, companies have a need to accelerate portfolio transformation, and M&A ambitions are projected to remain high.
Brazil should see growth in M&A activity due to several economic factors, including chemical plant profitability and low interest rates. In addition, the Brazilian government’s privatization agenda may help drive deals.
https://www.albawaba.com/business/pr/deloitte-global-report-forecasts-robust-ma-activity-chemical-industry-2020-1342313
March 2, 2020
Chemical M&A Forecast
Deloitte Global Report Forecasts Robust M&A Activity for Chemical Industry in 2020
The Deloitte Global Chemical Industry Mergers and Acquisitions Outlook (2020 Outlook) expects robust merger and acquisition (M&A) activity to continue throughout the coming year, despite the trade and geopolitical tensions, and slowing economies that shape today’s global economic uncertainty.
“Over the past few years we watched attentively as the chemical industry maintained healthy M&A activity levels despite the many challenges,” says Bart Cornelissen, Energy & Resources Leader and Managing Partner of Monitor Deloitte in the Middle East. “The focus has remained on growth and profitability through it all. It seems that the chemical industry has become more comfortable operating in the uncertainty which may now be considered the ‘new normal’. Given the drive by GCC oil and gas companies towards downstream, we expect to see inorganic growth as essential to deliver upon their strategies.”
One trend the 2020 Outlook sees shaping the M&A landscape is the continued integration of traditional oil and gas companies with petrochemical firms, as chemical production is becoming an increasingly important end-use. Another trend is increased sustainability concerns that are changing how chemical companies view their business models, leading to non-traditional alliances, partnerships, and joint ventures.
Private equity has experienced a resurgence since 2018 as an important component of acquisition transactions. Private equity groups are expected to play a renewed critical role in chemicals M&A by providing capital, acquiring assets, and building companies through consolidation.
“The global economy appears able to support continued M&A activity, and the fundamentals for M&A activity in the chemical industry in particular continue to be strong as well,” says Cornelissen. “Companies are searching for growth and a larger global footprint, along with efficiency in their operations and innovation in their solutions. There are many opportunities to create value through M&A.”
“The ongoing monetization of domestic assets in the Middle East will continue to support the diversification of portfolios to international markets, with the benefit of further securing long term product placement,” said Lawrence Hunt, Partner, M&A Consulting, Deloitte Middle East.
The following are snapshots of M&A activity by geography, as outlined in the 2020 Outlook:
- The United States remains the most active market for M&A transactions. Foreign buyers remain very interested in US assets, and portfolio management will continue to be an important theme for US companies.
- China is home to the world’s largest base chemicals capacity, and given the current adjustments in the Chinese economy there may be acquisition opportunities for foreign buyers, although not at a bargain.
- In the United Kingdom, Brexit uncertainty undermines business confidence, and M&A activity has been relatively flat. Expect continued caution, even though debt is inexpensive and potential players have cash to deploy.
- In Germany, growing concerns around a possible economic downturn could lead to a mild slowdown in M&A activity, especially as regulatory scrutiny has tightened significantly in Europe.
- India has a strong long-term growth outlook and has made a variety of tax and regulatory reforms friendly to the chemical industry. The industry is also enjoying increased domestic consumption across all sub-sectors.
- In the Netherlands, the economic climate remains strong, debt is inexpensive, and many companies have had strong earnings in recent years. However, disappointing earnings and uncertainty could challenge chemical M&A activity in the Netherlands.
- In Japan, many leading chemical companies saw a downturn in 2019 for a variety of reasons. Nonetheless, companies have a need to accelerate portfolio transformation, and M&A ambitions are projected to remain high.
Brazil should see growth in M&A activity due to several economic factors, including chemical plant profitability and low interest rates. In addition, the Brazilian government’s privatization agenda may help drive deals.
https://www.albawaba.com/business/pr/deloitte-global-report-forecasts-robust-ma-activity-chemical-industry-2020-1342313
February 25, 2020
FXI and Innocor Merger Completed
FXI and Innocor Complete Merger, Creating a Leading Provider of Innovative Comfort Technology
RADNOR, Pa., Feb. 25, 2020 /PRNewswire/ —
- Expansive manufacturing and geographic footprint and superior molecule-to-doorstep approach enables FXI to best meet the evolving needs of customers across industries and regions
- Integrated brand will reflect FXI’s position as the preeminent vertically integrated mattress and topper manufacturer in the fast-growing bedding industry
- FXI pioneers technologies that enhance style, comfort, performance, and wellness across consumer and technical applications
FXI today announced that it has successfully completed its previously announced merger with Innocor, creating a leading provider of innovative comfort technology solutions. The breadth of the combined company’s capabilities enables it to offer a complete array of end-to-end solutions across the broadest range of end markets – including bedding, furniture, healthcare, filtration, transportation, and acoustics. The combined company will operate under the FXI name.
The combined company possesses a wide range of relationships and capabilities, built through the heritage of two complementary industry pioneers, to deliver solutions that enhance everyday life. Consumers can find FXI’s products in a multitude of applications and experience the countless benefits of those products – from their homes, healthcare, workplaces, cars, and beyond.
“This is an incredibly exciting day for FXI, its talented employees and valued, longstanding partners. As a newly combined company utilizing the expertise of an integrated management team and significantly enhanced manufacturing and logistical capacity, FXI is positioned to deliver an expanded range of high-quality solutions to our customers faster and more efficiently,” said Harold J. Earley, President and Chief Executive Officer of FXI. “We will continue to emphasize operational excellence, putting our customers first and investing in R&D to develop new products, chemistries, processes, and applications. The new FXI will leverage our combined expertise to deliver comfort, wellness, and style to consumers across categories.”
In the rapidly growing bedding market, where purchasing habits of consumers are driving increased demand for innovative technologies, FXI is uniquely positioned to satisfy the comfort needs of consumers everywhere by leveraging distinct technical expertise and consumer-driven insights. FXI is a trusted supplier to leading mattress-in-a-box companies and other established consumer brands and will continue to grow Innocor’s Novaform and Sleep Innovations mattress brands with a focus on innovation and value.
In connection with obtaining Federal Trade Commission approval of the merger, FXI and Innocor have agreed to sell three production facilities to Future Foam, Inc., including FXI’s Kent, Washington location and Innocor facilities located in Elkhart, Indiana and Tupelo, Mississippi. Now headquartered in Radnor, Pennsylvania, FXI boasts 34 manufacturing and distribution facilities throughout North America with approximately 4,150 dedicated employees after accounting for the divested facilities described above.
Affiliates of One Rock Capital Partners, LLC, FXI’s controlling shareholder, will be the majority shareholder of the combined company with Bain Capital Private Equity, Innocor’s majority owner, continuing to own a stake in the combined company. Additional information on the newly integrated company is available at www.fxi.com.
ABOUT FXI
FXI is a leading comfort technology supplier to North American home furnishings providers, including wholesale bedding manufacturers, DTC mattress providers and furniture retailers, OEMs and fabricators. Across a wide range of relationships and capabilities, FXI embraces the power and potential of bedding technologies to improve the sleep experience. FXI’s products also include solutions for the Home, Healthcare, Electronics, Industrial, Personal Care and Transportation end markets. For more information please visit: www.fxi.com.
https://www.dailyamerican.com/news/state/fxi-and-innocor-complete-merger-creating-a-leading-provider-of/article_a095dd94-0126-5c10-b391-e10b6724daab.html
February 25, 2020
FXI and Innocor Merger Completed
FXI and Innocor Complete Merger, Creating a Leading Provider of Innovative Comfort Technology
RADNOR, Pa., Feb. 25, 2020 /PRNewswire/ —
- Expansive manufacturing and geographic footprint and superior molecule-to-doorstep approach enables FXI to best meet the evolving needs of customers across industries and regions
- Integrated brand will reflect FXI’s position as the preeminent vertically integrated mattress and topper manufacturer in the fast-growing bedding industry
- FXI pioneers technologies that enhance style, comfort, performance, and wellness across consumer and technical applications
FXI today announced that it has successfully completed its previously announced merger with Innocor, creating a leading provider of innovative comfort technology solutions. The breadth of the combined company’s capabilities enables it to offer a complete array of end-to-end solutions across the broadest range of end markets – including bedding, furniture, healthcare, filtration, transportation, and acoustics. The combined company will operate under the FXI name.
The combined company possesses a wide range of relationships and capabilities, built through the heritage of two complementary industry pioneers, to deliver solutions that enhance everyday life. Consumers can find FXI’s products in a multitude of applications and experience the countless benefits of those products – from their homes, healthcare, workplaces, cars, and beyond.
“This is an incredibly exciting day for FXI, its talented employees and valued, longstanding partners. As a newly combined company utilizing the expertise of an integrated management team and significantly enhanced manufacturing and logistical capacity, FXI is positioned to deliver an expanded range of high-quality solutions to our customers faster and more efficiently,” said Harold J. Earley, President and Chief Executive Officer of FXI. “We will continue to emphasize operational excellence, putting our customers first and investing in R&D to develop new products, chemistries, processes, and applications. The new FXI will leverage our combined expertise to deliver comfort, wellness, and style to consumers across categories.”
In the rapidly growing bedding market, where purchasing habits of consumers are driving increased demand for innovative technologies, FXI is uniquely positioned to satisfy the comfort needs of consumers everywhere by leveraging distinct technical expertise and consumer-driven insights. FXI is a trusted supplier to leading mattress-in-a-box companies and other established consumer brands and will continue to grow Innocor’s Novaform and Sleep Innovations mattress brands with a focus on innovation and value.
In connection with obtaining Federal Trade Commission approval of the merger, FXI and Innocor have agreed to sell three production facilities to Future Foam, Inc., including FXI’s Kent, Washington location and Innocor facilities located in Elkhart, Indiana and Tupelo, Mississippi. Now headquartered in Radnor, Pennsylvania, FXI boasts 34 manufacturing and distribution facilities throughout North America with approximately 4,150 dedicated employees after accounting for the divested facilities described above.
Affiliates of One Rock Capital Partners, LLC, FXI’s controlling shareholder, will be the majority shareholder of the combined company with Bain Capital Private Equity, Innocor’s majority owner, continuing to own a stake in the combined company. Additional information on the newly integrated company is available at www.fxi.com.
ABOUT FXI
FXI is a leading comfort technology supplier to North American home furnishings providers, including wholesale bedding manufacturers, DTC mattress providers and furniture retailers, OEMs and fabricators. Across a wide range of relationships and capabilities, FXI embraces the power and potential of bedding technologies to improve the sleep experience. FXI’s products also include solutions for the Home, Healthcare, Electronics, Industrial, Personal Care and Transportation end markets. For more information please visit: www.fxi.com.
https://www.dailyamerican.com/news/state/fxi-and-innocor-complete-merger-creating-a-leading-provider-of/article_a095dd94-0126-5c10-b391-e10b6724daab.html
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