Exponential growth at construction foam producer Epsilyte LLC since the company’s 2020 carveout by Balmoral Funds LLC has garnered attention within the chemicals industry, five sources familiar with the business said.

Epsilyte boasts Ebitda between $125 million and $140 million, up from below $10 million of Ebitda when Balmoral picked up the business from Flint Hills Resources LLC in October 2020, three of the sources said.

Epsilyte, which specializes in expandable polystyrene resin manufacturing, generates revenue of around $400 million with Ebitda margins pushing into the mid-thirties, two of the sources explained.

The company benefits from the ability to pass through the cost of styrene and other raw materials to its customers, which allows its Ebitda to remain fairly stable over time, while its revenue may grow as input costs grow, the sources said.

Epsilyte has grown to about 300 employees and is expected to garner interest from both the private equity community and strategic acquirers when a sale does arise, though no process is imminent, sources cautioned.

In just 20 months, the Los Angeles firm has grown Epsilyte’s Ebitda by more than 12 times via two bolts ons and a wave of growth in the construction industry.

Epsilyte is supplying somewhere between 70 million and 100 million pounds out of the roughly 1.2 billion to 1.3 billion pounds of expandable polystyrene, or EPS, foam being produced in North America, and about 65% of its produced material goes into building insulation market, according to the third source.