M&As: Huntsman buys Demilec for US$350 mn; Evonik invests in digital printing company Velox

US-based speciality chemicals supplier Huntsman Corp. has acquired Demilec, one of North America's manufacturers and distributors of spray polyurethane foam (SPF) insulation systems for residential and commercial applications, from an affiliate of Sun Capital Partners.

Demilec has annual revenues of approximately US$170 million and two manufacturing facilities located in Arlington, Texas, and Boisbriand, Quebec, where it produces a full suite of MDI based SPF formulations which are marketed directly to applicators as well as through distributors. Demilec specialises in both closed cell and open cell formulations, with a focus on products with renewable and recyclable content that are eco-friendly, bio-preferred and reduce energy consumption through highly efficient insulation properties.

As per terms of the agreement, Huntsman will pay US$350 million in an all-cash transaction, funded from available liquidity. The transaction is expected to close by the end of second quarter 2018.

Meanwhile in other news, German chemicals company Evonik is, through its venture capital unit, invested in Velox, a digital printing technology developer located in Rosh HaAyin, Israel. This marks the company’s first investment in Israel, which has become a hub for start-ups. Velox possesses new digital printing technology for cost effective high-speed photo-quality printing on metal, plastic, or glass packaging, either for extremely small series or for large-scale industrial projects.

“Evonik is one of the world’s leading speciality chemicals companies and sees itself as a partner to the printing industry. The sophisticated demands in the field of digital printing make this market particularly interesting for the development of our Specialty Additives Growth Engine,” says Bernhard Mohr, the head of Evonik Venture Capital. The parties have agreed to keep the scope of the investment confidential.

The inks used have been developed by Velox especially for digital printing on metal, plastic, and glass, and offer, among other advantages, an extremely wide range of realistic colours and embellishment effects. The company is already offering decoration systems for cylindrical containers such as plastic tubes and aluminium aerosols.

The Velox solution includes a novel printer architecture and a palette of uniquely formulated inks. Velox will initially use the newly available capital to drive technology development and marketing for additional printer systems and applications.

As part of its venture capital activities, Evonik plans to invest a total of EUR100 million in promising start-ups with innovative technologies and in leading speciality venture capital funds. The regional focus lies on Europe, the US, and Asia. Evonik currently holds shares in over 20 start-ups and speciality funds.

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(PRA)