Huntsman Corp. has signed a definitive agreement to acquire the business of Oxid L.P., a privately held manufacturer and marketer of specialty urethane polyols based in Houston, Huntsman said July 8. The financial terms of the agreement were not disclosed.
Oxid’s polyols are a key component in the production of energy-saving polyurethane insulation products that are used in residential and commercial construction. The polyols are combined with methylene diphenyl diisocyanate (MDI) to create polyurethane foam insulation for walls, roofs, refrigerators and many other applications.
Oxid markets its line of specialty polyols under the market name Terol and distributes products worldwide from its manufacturing facility in Houston.
The addition of Oxid’s Terol line will strengthen Huntsman’s downstream insulation markets in North America and provide new opportunities globally, said Anthony Hankins, president of Huntsman’s Polyurethanes division.
“As growth in the U.S. housing and construction markets gathers pace, we aim to leverage the significant benefits of MDI polyurethanes insulation, and this acquisition will strengthen our position considerably,” Hankins said. “We see strong market and technology synergies in combining the two businesses and look forward to concluding the deal in the near future.”
The transaction is expected to close during the third quarter and will be immediately accretive to Huntsman’s earnings. Oxid generated $86 million of revenue in 2012.
For more information, visit www.huntsman.com.