Huntsman Corporation’s $350 Million Acquisition of Icynene-Lapolla

Kirkland & Ellis represented Huntsman Corporation in the transaction. Willkie represented FFL Partners and Icynene-Lapolla.

Huntsman Corporation (NYSE: HUN) entered into an agreement to acquire Icynene-Lapolla, a leading North American manufacturer and distributor of spray polyurethane foam (SPF) insulation systems for residential and commercial applications, from an affiliate of FFL Partners, LLC.

Under terms of the agreement, Huntsman will pay $350 million, subject to customary closing adjustments, in an all-cash transaction funded from available liquidity.  Based on full year 2019 adjusted EBITDA estimates, the purchase price represents an adjusted EBITDA multiple of approximately 10 times, or approximately 7 times adjusted EBITDA pro forma for synergies.  The transaction is expected to close in the first half of 2020.

Icynene-Lapolla has annual revenues of approximately $230 million with two manufacturing facilities located in Houston, Texas and Mississauga, Ontario.

Huntsman Corporation is a global manufacturer and marketer of differentiated and specialty chemicals. The Company offers MDI formulations and systems, advanced epoxy, acrylic and polyurethane-based formulations, maleic anhydride, surfactants, amines, textile chemicals and dyes, and wide variety of other chemicals.

The Kirkland team was led by transactional partner Shawn O’Hargan (Picture) and associates Arlene Ortiz-Leytte, William Halaby, Philippe Simard and Steve Schwarzbach and foreign associate Messaouda Benbouzid, along with transactional partner David Fox. The team also included tax partners Mike Carew and Adam Kool and associate Yonatan Tammam; technology and IP transactions partner David MacDonald and associates Kevin Jacobsen and Joanna Schlingbaum; employee benefits partner Melissa Grim and associate Emily Morrison; executive compensation partner Kate Coverdale and associate Malhar Naik; labor and employment partner Matthew Keiser and associates Christine Lacku and Melissa Soares; environmental transactions partners Toby Chun and Carleigh Rodriguez; antitrust partners Ian John, Paula Riedel, Peter McCormack and associates Jack Coles, Joel Gory and Evan Turnage; real estate partners John Goldman and Ian Craig and associate Kevin Beckoff; international trade and national security associate Luci Hague and William Phalen; and litigation associate Paul Weeks.

The Willkie deal team was led by partners Neil Townsend and David Cosgrove.

Involved fees earner: Kevin Beckoff – Kirkland & Ellis; Mike Carew – Kirkland & Ellis; Toby Chun – Kirkland & Ellis; Jack Coles – Kirkland & Ellis; Katherine Coverdale – Kirkland & Ellis; Ian Craig – Kirkland & Ellis; David Fox – Kirkland & Ellis; John Thomas Goldman – Kirkland & Ellis; Joel Gory – Kirkland & Ellis; Melissa Grim – Kirkland & Ellis; Luci Hague – Kirkland & Ellis; William Halaby III – Kirkland & Ellis; Kevin Jacobsen – Kirkland & Ellis; Ian John – Kirkland & Ellis; Matthew Keiser – Kirkland & Ellis; Adam Kool – Kirkland & Ellis; Christine Lacku – Kirkland & Ellis; David MacDonald – Kirkland & Ellis; Peter McCormack – Kirkland & Ellis; Emily Morrison – Kirkland & Ellis; Malhar Naik – Kirkland & Ellis; Arlene Ortiz-Leytte – Kirkland & Ellis; Shawn O’Hargan – Kirkland & Ellis; William Phalen – Kirkland & Ellis; Paula Riedel – Kirkland & Ellis; Carleigh Rodriguez – Kirkland & Ellis; Joanna Schlingbaum – Kirkland & Ellis; Steve Schwarzbach – Kirkland & Ellis; Philippe Simard – Kirkland & Ellis; Melissa Soares – Kirkland & Ellis; Yonatan Tammam – Kirkland & Ellis; Evan Turnage – Kirkland & Ellis; Paul Weeks – Kirkland & Ellis; David B. Cosgrove – Willkie Farr & Gallagher; Neil Townsend – Willkie Farr & Gallagher;

Law Firms: Kirkland & Ellis; Willkie Farr & Gallagher;

Clients: FFL Partners LP; Huntsman Corporation; Icynene-Lapolla;

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Author: Ambrogio Visconti