Covestro LLC has agreed to sell its North American spray polyurethane foam business to Accella Polyurethane Systems.
Financial terms of the deal, announced Feb. 22, were not disclosed. The acquisition is scheduled to be completed in the second quarter of 2017.
“This divestiture will allow us to focus on our core business while ensuring our spray polyurethane foam employees can continue to shape the industry as a part of Accella,” said Jerry MacCleary, president of Covestro LLC.
Covestro's spray foam business includes products for residential and commercial buildings.
Andy Harris, president and CEO of Accella, added: “This acquisition will significantly improve Accella’s position in the spray polyurethane foam market and is another strategic step with our positive track record combining the best polyurethane based companies in the industry.
“The addition of a well-rounded product technology portfolio and a team of highly regarded industry experts will highly complement our current spray polyurethane foam business,” he said.
“Moving forward, Accella intends to focus on investing in and growing our spray foam business to meet the needs of our valued customers with the best people, products and service in the industry.”
The company’s spray foam business portfolio includes Coatings & Foam Solutions, Burtin Polymer Labs, Premium Spray Products, and Quadrant Spray Foam.
About the SPF Business
Located in Spring, Texas, Covestro’s SPF facility includes both commercial and production operations. The SPF products manufactured there are used as insulation and roofing in the construction of commercial buildings and homes.
“The accomplishments of Covestro’s spray polyurethane foam team cannot be overstated. Both technically and commercially, their contributions have helped grow spray polyurethane foam as a technology in the construction market,” said MacCleary.
Operations at the facility will continue with “business as usual” for a smooth transition, the companies explain. Covestro’s 40 employees at the facility will join the Accella team, the companies said.
Accella is a leading manufacturer of custom-formulated polyurethane systems, and polyurethane-based recycled rubber products. The polyurethane business is focused on foams, binders, coatings, adhesives, sealants and elastomers.
Accella is owned by Arsenal Capital Partners, a New York-based private equity firm.