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Icynene to take over LaPolla
Posted on Friday, 06 October 2017 09:38
Icynene is acquiring OTC Bulletin Board-listed LaPolla Industries in a cash deal worth USD 160.00 million, which includes the assumption of existing debt.

The buyer is paying USD 1.03 per share, representing a 35.3 per cent premium over the target’s close of USD 0.76 on 4th October 2017, the last trading day prior to the deal being announced.

Lapolla’s shareholders that control a collective stake of 78.0 per cent have approved the transaction, which remains subject to regulatory approvals and other customary closing conditions.

Based in Houston, Texas, the target is a manufacturer and supplier of spray polyurethane foam used as coatings and insulation materials.

Its product is designed to protect and preserve roofs, rigs and industrial equipment, as well as to save utility costs by sealing buildings from air and moisture.

LaPolla posted sales of USD 86.39 million in the 12 months ended 31st December 2016, up 9.8 per cent on the USD 78.65 million recorded in the previous year.

Net income for the period totalled USD 6.38 million, up significantly from a net loss of USD 577,000 in 2015.

Mississauga, Canada-based Icynene manufactures spray foam insulation products for walls, ceilings, floors and attics, as well as other non-construction applications.

The buyer has been a portfolio company of private equity firm FFL Partners since the completion of an institutional buyout in 2014.

Commenting on the transaction, LaPolla’s chief executive and president Doug Kramer said: “Consumers are increasingly turning to high quality spray foam that forms an effective air barrier to meet their energy saving insulation needs.

“Together, as one company, Lapolla and Icynene will have more resources to fully serve our respective customers and positions both companies for long-term, sustained growth."

The acquiror also successfully snapped up polyurethane insulation products maker Isolat France last month.

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