The Urethane Blog

Everchem Updates

VOLUME XXI

September 14, 2023

Everchem’s Closers Only Club

Everchem’s exclusive Closers Only Club is reserved for only the highest caliber brass-baller salesmen in the chemical industry. Watch the hype video and be introduced to the top of the league: — read more

February 25, 2020

FXI and Innocor Merger Completed

FXI and Innocor Complete Merger, Creating a Leading Provider of Innovative Comfort Technology

  • By FXI
  • Updated

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 to Divest Three Plants

FTC Requires Polyurethane Foam Producers FXI Holdings, Inc. and Innocor, Inc. To Divest Assets in Three Regional Markets

Agency alleges merger would reduce competition among producers of foam used in home furnishings

For Release

Polyurethane foam producers FXI Holdings, Inc. and Innocor, Inc. have agreed to divest polyurethane foam pouring plants in three regional markets to Future Foam, Inc., to settle Federal Trade Commission charges that FXI’s proposed $850 million acquisition of Innocor would violate federal antitrust law.

The FTC alleges that the combination of FXI and Innocor would substantially lessen competition for low-density conventional polyurethane foam used in home furnishings in three regional markets: the Pacific Northwest (Oregon and Washington); the Midwest states of Indiana, Michigan, and Ohio; and Mississippi.

The complaint states that regional markets are appropriate because low-density foam is bulky and expensive to ship, relative to the value of the product. FXI and Innocor are the only suppliers in the Pacific Northwest, two of three major suppliers in the Midwest states, and two of four major suppliers in Mississippi, according to the complaint.

The complaint alleges that without a remedy, the proposed acquisition would eliminate direct and substantial competition between FXI and Innocor and would increase the likelihood of coordinated interaction among the remaining competitors in each regional market.

To remedy the proposed transaction’s anticompetitive effects, the proposed order requires the companies to divest FXI’s foam-pouring plant in Kent, Washington and Innocor’s foam-pouring plants in Elkhart, Indiana and Tupelo, Mississippi to Future Foam no later than 10 days after the close of the acquisition. Further information about the consent agreement—including details on transitional assistance and the appointment of a monitor—are set forth in the analysis to aid public comment for this matter.

The Commission vote to issue the complaint and accept the proposed consent order for public comment was 5-0. The FTC will publish the consent agreement package in the Federal Register shortly. Instructions for filing comments appear in the published notice. Comments must be received 30 days after publication in the Federal Register. Once processed, comments will be posted on Regulations.gov.

https://www.ftc.gov/news-events/press-releases/2020/02/ftc-requires-polyurethane-foam-producers-fxi-holdings-inc-innocor

February 25, 2020

FXI and Innocor to Divest Three Plants

FTC Requires Polyurethane Foam Producers FXI Holdings, Inc. and Innocor, Inc. To Divest Assets in Three Regional Markets

Agency alleges merger would reduce competition among producers of foam used in home furnishings

For Release

Polyurethane foam producers FXI Holdings, Inc. and Innocor, Inc. have agreed to divest polyurethane foam pouring plants in three regional markets to Future Foam, Inc., to settle Federal Trade Commission charges that FXI’s proposed $850 million acquisition of Innocor would violate federal antitrust law.

The FTC alleges that the combination of FXI and Innocor would substantially lessen competition for low-density conventional polyurethane foam used in home furnishings in three regional markets: the Pacific Northwest (Oregon and Washington); the Midwest states of Indiana, Michigan, and Ohio; and Mississippi.

The complaint states that regional markets are appropriate because low-density foam is bulky and expensive to ship, relative to the value of the product. FXI and Innocor are the only suppliers in the Pacific Northwest, two of three major suppliers in the Midwest states, and two of four major suppliers in Mississippi, according to the complaint.

The complaint alleges that without a remedy, the proposed acquisition would eliminate direct and substantial competition between FXI and Innocor and would increase the likelihood of coordinated interaction among the remaining competitors in each regional market.

To remedy the proposed transaction’s anticompetitive effects, the proposed order requires the companies to divest FXI’s foam-pouring plant in Kent, Washington and Innocor’s foam-pouring plants in Elkhart, Indiana and Tupelo, Mississippi to Future Foam no later than 10 days after the close of the acquisition. Further information about the consent agreement—including details on transitional assistance and the appointment of a monitor—are set forth in the analysis to aid public comment for this matter.

The Commission vote to issue the complaint and accept the proposed consent order for public comment was 5-0. The FTC will publish the consent agreement package in the Federal Register shortly. Instructions for filing comments appear in the published notice. Comments must be received 30 days after publication in the Federal Register. Once processed, comments will be posted on Regulations.gov.

https://www.ftc.gov/news-events/press-releases/2020/02/ftc-requires-polyurethane-foam-producers-fxi-holdings-inc-innocor

February 20, 2020

Huntsman Completes Acquisition

Huntsman Completes the Acquisition of Icynene-Lapolla, Expanding its Downstream Footprint in Spray Polyurethane Foam Insulation

THE WOODLANDS, Texas, Feb. 20, 2020 /PRNewswire/ — Huntsman Corporation (NYSE: HUN) today announced that it has completed the acquisition of Icynene-Lapolla, a leading North American manufacturer and distributor of spray polyurethane foam (SPF) insulation systems for residential and commercial applications.  Huntsman acquired the business from an affiliate of FFL Partners, LLC, for $350 million, subject to customary closing adjustments, in an all-cash transaction funded from available liquidity.

The acquisition of Icynene-Lapolla is aligned with Huntsman’s strategy of growing its downstream polyurethanes business. The combination of Icynene-Lapolla with Demilec, the SPF business Huntsman acquired in 2018, will create the world’s leading supplier of spray foam products used to insulate commercial and residential structures.  The acquisition will further strengthen our portfolio of leading energy-saving insulation applications and technologies, providing customers with an unmatched product offering. Further, it will accelerate the globalization of the combined SPF business by leveraging Huntsman’s extensive international network of systems houses. The acquisition will generate substantial synergies as a result of Huntsman’s ability to pull through significant volumes of polyols and lower margin upstream polymeric MDI into the higher margin and growing specialized SPF systems.

Icynene-Lapolla has annual revenues of approximately $230 million with two manufacturing facilities located in Houston, Texas and Mississauga, Ontario, where it produces a full range of MDI-based SPF formulations and reflective roof coatings, which it markets directly to applicators as well as through distributors.

Tony Hankins, President of Huntsman’s Polyurethanes division, commented on the acquisition: “I am excited about the opportunities that lie ahead, now that Icynene-Lapolla is joining our high-growth MDI urethanes insulation business. Together with Demilec, our existing SPF business, we will create a world-leading SPF platform, providing highly innovative, energy-saving solutions for residential and commercial property owners alike.” 

Peter Huntsman, Chairman, President and CEO added: “SPF is a highly attractive growth business and Icynene-Lapolla is widely recognized as a leading player in the industry. Icynene-Lapolla will strengthen our move downstream and provide further impetus to the globalization of our SPF technology.  The purchase price represents an adjusted EBITDA multiple of approximately 10 times, or approximately 7 times adjusted EBITDA, pro forma for synergies.  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.”  

https://ir.huntsman.com/news-releases/detail/428/huntsman-completes-the-acquisition-of-icynene-lapolla

February 20, 2020

Huntsman Completes Acquisition

Huntsman Completes the Acquisition of Icynene-Lapolla, Expanding its Downstream Footprint in Spray Polyurethane Foam Insulation

THE WOODLANDS, Texas, Feb. 20, 2020 /PRNewswire/ — Huntsman Corporation (NYSE: HUN) today announced that it has completed the acquisition of Icynene-Lapolla, a leading North American manufacturer and distributor of spray polyurethane foam (SPF) insulation systems for residential and commercial applications.  Huntsman acquired the business from an affiliate of FFL Partners, LLC, for $350 million, subject to customary closing adjustments, in an all-cash transaction funded from available liquidity.

The acquisition of Icynene-Lapolla is aligned with Huntsman’s strategy of growing its downstream polyurethanes business. The combination of Icynene-Lapolla with Demilec, the SPF business Huntsman acquired in 2018, will create the world’s leading supplier of spray foam products used to insulate commercial and residential structures.  The acquisition will further strengthen our portfolio of leading energy-saving insulation applications and technologies, providing customers with an unmatched product offering. Further, it will accelerate the globalization of the combined SPF business by leveraging Huntsman’s extensive international network of systems houses. The acquisition will generate substantial synergies as a result of Huntsman’s ability to pull through significant volumes of polyols and lower margin upstream polymeric MDI into the higher margin and growing specialized SPF systems.

Icynene-Lapolla has annual revenues of approximately $230 million with two manufacturing facilities located in Houston, Texas and Mississauga, Ontario, where it produces a full range of MDI-based SPF formulations and reflective roof coatings, which it markets directly to applicators as well as through distributors.

Tony Hankins, President of Huntsman’s Polyurethanes division, commented on the acquisition: “I am excited about the opportunities that lie ahead, now that Icynene-Lapolla is joining our high-growth MDI urethanes insulation business. Together with Demilec, our existing SPF business, we will create a world-leading SPF platform, providing highly innovative, energy-saving solutions for residential and commercial property owners alike.” 

Peter Huntsman, Chairman, President and CEO added: “SPF is a highly attractive growth business and Icynene-Lapolla is widely recognized as a leading player in the industry. Icynene-Lapolla will strengthen our move downstream and provide further impetus to the globalization of our SPF technology.  The purchase price represents an adjusted EBITDA multiple of approximately 10 times, or approximately 7 times adjusted EBITDA, pro forma for synergies.  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.”  

https://ir.huntsman.com/news-releases/detail/428/huntsman-completes-the-acquisition-of-icynene-lapolla