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Affiliate of Sun Capital Completes $350 Million Sale of Demilec to Huntsman CorporationSun Capital Partners, Inc. ("Sun Capital"), a leading private investment firm specializing in leveraged buyouts and investments in market-leading companies, today announced that an affiliate has completed its previously announced sale of Demilec (or "the Company"), a leading manufacturer of spray polyurethane foam (SPF) insulation systems, to Huntsman Corporation (NYSE: HUN) for $350 million. The Woodlands, Texas-based Huntsman first reported the transaction on March 13, 2018. During the period owned by the Sun Capital affiliate, Demilec grew to become one of North America's premier manufacturers and distributors of SPF insulation systems for residential and commercial applications. Demilec operates two manufacturing facilities, located in Arlington, Texas and Boisbriand, Quebec, that produce a full suite of SPF formulations, focusing on products with renewable and recyclable content that are eco-friendly and bio-preferred. "Demilec has been an exciting opportunity for Sun Capital Partners, and its success highlights our firm's strengths in building industry-leading management teams and enhancing operational proficiency," said Marc Leder, Co-CEO at Sun Capital. "Together with the management team assembled, we assisted Demilec in its efforts to increase market share at a time when the SPF product category was beginnin to grow in importance compared to other forms of insulation." When Sun Capital's affiliate acquired Demilec in September 2013, the Company was being operated as four separate business units. Sun Capital saw an opportunity to consolidate the business under a new management team, resulting in productivity improvements and overall cost reductions. Sun Capital also invested in Demilec, allowing it to develop new, innovative products that increased Demilec's line of offerings and market share. "We worked with the senior leadership team, leveraging their deep sector knowledge, to take an insider's look at trends of concern to customers," said Jeremy Stone, Managing Director at Sun Capital. "We saw demand for more environmentally-friendly solutions, and by investing in those we were able to increase Demilec's market share and profitability despite rising material costs." Lazard and Piper Jaffray served as financial advisors to Demilec on the sale. Sun Capital has significant experience investing in and building industrial businesses. Current and past affiliated portfolio companies include Aclara, a leading global provider of smart infrastructure solutions for utilities; Robertshaw, a global leader in thermal, flow, and control management products and solutions, and ThermaSys Corporation, a manufacturer and supplier of engineered copper, brass and aluminum heat exchanger components and assemblies. About Sun Capital Partners, Inc. Sun Capital Partners, Inc. is a global private equity firm focused on identifying companies' untapped potential and leveraging its deep operational and financial resources to transform results. Sun Capital is a trusted partner that is recognized for its investment and operational experience, including particular expertise in the consumer products and services, food and beverage, industrial, packaging, chemicals, building products, automotive, restaurant and retail sectors. Since 1995, Sun Capital has invested in more than 355 companies worldwide with revenues of approximately $50 billion across a broad range of industries and transaction structures. Sun Capital has offices in Boca Raton, Los Angeles and New York, and affiliates in London and Shenzhen.
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