It looks like there's another M&A roll-up on the way in an unexpected corner of the industry. First it was new action in rotomolding. Now it's in foam.
Wynnchurch Capital LP just made its third acquisition of an expanded foam company in about two months, marking more M&A news out of the foam side of the business than we'd normally see.
And in announcing its acquisition of Insulation Corp. of America — in addition to its acquisition of Huntington Foam and Drew Foam in late 2020 — Wynnchurch says it wants to buy more.
"Drew, Huntington and ICA will combine to form a market-leading foam products provider focused on customer service and quality," Erin Murphy, managing director at Wynnchurch, said in a news release. "We are excited about the future opportunities for this growing investment platform."
The three companies have expanded polystyrene and expanded polypropylene production, serving a range of end markets such as construction and marine. Insulation Corp. also produces foam for custom projects such as art installations.