Huntsman to buy urethane polyols maker Oxid

In a bid to expand its polyurethane foam insulation business, chemical company Huntsman Corporation is buying specialty urethane polyols supplier Oxid LP.

The terms of the deal have not been disclosed.

Huntsman is headquartered in Woodlands, Tex.

Houston, Tex.-based Oxid’s Terol polyols can be used in the production of energy-saving polyurethane insulation products found in residential and commercial construction; the polyols are combined with methylene diphenyl diisocyanate (MDI) – in which Huntsman’s Polyurethanes division is a global producer – to create polyurethane foam insulation for walls, roofs, refrigerators and many other applications.

“Oxid has an excellent reputation in the market, and the addition of its Terol specialty polyols to our existing MDI product portfolio will strengthen our offer to the key downstream insulation markets in North America and provide new opportunities globally,” said Anthony P. 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. 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 2013.

According to a Huntsman statement, Oxid generated US$86 million of revenue in 2012.