The Woodlands, Texas -- Huntsman Corp. said on 8 July 2013 that it has agreed to buy Oxid LP, a firm which makes and sells specialty urethane polyols.
Financial terms were not disclosed.
Oxid of Houston, Texas, started producing its Terol poyester polyols in 1981. It produces a range of highly functionalised polyols for the rigid foam industry.
Oxid said its products had hydroxyl values from 120 to 350 and could be modified with enhanced functionality for demanding applications. The company added that the high aromatic content of Terol polyester polyols improves flammability characteristics in both polyisocyanurate (PIR) and polyurethane (PU) applications, reducing the need for flame retardants.
Commenting on the planned acquisition, Anthony Hankins, president of Huntsman's Polyurethanes division, said: "Oxid has an excellent reputation in the market, and the addition of its Terol specialty polyols to our existing MDI (methylene diphenyl diisocyanate) product portfolio will strengthen our offer to the key downstream insulation markets in North America and provide new opportunities globally.
Huntsman said that the deal made sense because the polyols are often used with MDI to create polyurethane foam insulation for walls, roofs, refrigerators and many other applications.
"We see strong market and technology synergies in combining the two businesses and look forward to concluding the deal in the near future," said Hankins.
The transaction is expected to close during the third quarter and Huntsman said it will add to Huntsman's earnings immediately. Oxid generated $86 million of revenue in 2012.
