Affiliate of Sun Capital Completes $350 Million Sale of Demilec to Huntsman Corporation

BOCA RATON, Fla.–(BUSINESS WIRE)–Sun 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 beginning 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.

Contacts

Stanton
Doug Allen, 646-502-3530
[email protected]