Icynene U.S. Holding Corp. has agreed to buy spray foam producer Lapolla Industries Inc. for $160 million. The buyer is backed by backed by private equity firm FFL Partners.

Lapolla, located in Houston, manufactures spray polyurethane foam for insulation and roofing products that are designed to reduce energy consumption. Mississauga, Ontario-based Icynene also makes spray foam material. Icynene has installed insulation on more than 425,000 commercial and residential projects since it was formed in 1986.

“Consumers are increasingly turning to high quality spray foam that forms an effective air barrier to meet their energy saving insulation needs," says Icynene CEO Mark Sarvary. Houlihan Lokey Inc. (NYSE: HLI) is advising Lapolla.

FFL Partners is a San Francisco-based middle-market private equity firm that invests between $50 million to $300 million in transactions. The firm was founded in 1997 and concentrates on the industrials, consumer, financial services, healthcare and business services sectors.

Demand for spray foam companies has been rising in the middle-market. Accella Polyurethane Systems LLC, a portfolio company of Arsenal Capital Partners, has reached a deal with Covestro LLC to acquire certain assets of the target’s spray polyurethane foam business. In 2016, Audax Private Equity-backed Innovative Chemical Products (ICP) purchased adhesives maker Fomo Products Inc.

Lapolla spray foam products
Lapolla Industries

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Demitri Diakantonis

Demitri Diakantonis

Demitri Diakantonis joined SourceMedia in 2015 and serves as Assistant Managing Editor of Mergers & Acquisitions and writes The Buyside column about corporate dealmaking, and also covers the consumer sector.