LN Advises Industrial Thermo Polymers in its sale to Armacell S.A.
Loopstra Nixon advised Industrial Thermo Polymers Limited and its shareholders in its sale to Armacell Canada.
Loopstra Nixon’s team consisted of J.A. (Sandy) Nixon, Allan Ritchie, Bobbi Wallace, Jason Cichetti and Samantha Lampert (Corporate/M&A), Reg Theriault (Real Estate), and Matthew Thurlow (Intellectual Property).
Armacell, a leader in flexible insulation foams for the equipment insulation market and a leading provider of engineered foams, has completed the acquisition of Industrial Thermo Polymers Limited (ITP), a leading manufacturer of extruded polyethylene foam products in North America. "In Armacell ITP has found a successor with a global growth strategy, where it can leverage the production capabilities, specifically polyethylene extrusion, and know-how developed at ITP over the past 35 years," says Steve Hartman, President of Industrial Thermo Polymers Ltd. "ITP also offers Armacell a strategic foothold in the Canadian market place. I am excited and confident that it will build on what we have created and be a great home for our people." ITP, which was founded in 1980 and maintains headquarters in Ontario, Canada, is a leading manufacturer of extruded polyethylene foam products in North America. Under the brand name Tundra, ITP manufactures products in a broad range of markets, including standard and self-sealing pipe Insulation, insulating foam filler and water toys. In addition, ITP is also North America's foremost manufacturer of sealant joint backer rod products for the waterproofing industry. In 2014, it generated revenue of approx. C$ 30 million.
This transaction significantly strengthens Armacell's market position and footprint in North America – especially in the pipe insulation business. This acquisition reflects another step in the continuation of Armacell's internationalization and growth strategy. Furthermore, it firmly establishes Armacell in the new market segments of water toys and backer rods. "All of the product segments that ITP is active in – such as pipe insulation, backer rods and water toys – exhibit strong growth rates. The predicted rebound of the overall US construction market and the strengthening of the US dollar, which both have a significant impact on the company´s sales, make ITP an attractive investment for us", explains Patrick Mathieu, CEO of Armacell International S.A. "ITP possesses decades of technology know-how in the production of extruded polyethylene tubes and profiles. We are looking forward to having such an experienced team on board."