More Consolidation in PU Segment With Merging of FXI, Innocor

Flexible polyurethane foam producers FXI Inc. and Innocor have signed a definitive agreement to merge, with the deal closing in the second quarter of 2019, pending regulatory approval. FXI, headquartered in Media, Pennsylvania, is held by One Rock Capital Partners LLC. Innocor, based in Red Bank, New Jersey, is part of Bain Capital Private Equity’s portfolio. The two private equity firms will retain joint ownership of the blended foamer and foam products company. Financial terms of the deal were not disclosed.

FXI’s products are used in a variety of end markets, including bedding, furniture, transportation, medical, filtration, acoustics and industrial. The company has 16 manufacturing and distribution facilities with approximately 2,200 employees.

Innocor supplies finished products for retail, e-commerce and direct-to-consumer segments, as well PU foam components for the beddings, furniture and RV segments. The company has 21 manufacturing and distribution facilities with about 1,800 employees.

“This partnership brings together two industry pioneers with complementary capabilities,” said Harold Earley, FXI president and chief executive officer who will lead the combined company. “We will be able to offer customers an unparalleled service experience through enhanced manufacturing and R&D capabilities — creating one of the broadest ranges of innovative, high-quality polyurethane foam products and solutions — and reduced delivery times by leveraging our expanded footprint.”

Innocor President and CEO Bill Redmond, who will have a seat on the new company’s board, said: “Innocor and FXI are already leaders in product development, customer satisfaction, efficient operating platforms and in the growth opportunities we offer for employees. Together, we will continue to invest in bringing innovative new technologies to customers and consumers that deliver unrivaled comfort and quality across a broad range of products.”

The merger of FXI and Innocor is the second major consolidation in the PU foam segment in recent years. In 2016, another private equity firm Arsenal wrapped up three companies — HSM’s Elite Foam unit, Pacific Urethanes and Peterson Chemical Technology — to form Elite Comfort Solutions, which in late 2018 was sold to Carthage, Missouri-based Leggett & Platt Inc.