Huntsman has completed the acquisition of Oxid, a Houston-based manufacturer and marketer of specialty urethane polyols, for an amount of up to $75 million, company officials said on Friday.
Oxid generated $86 million of revenue in 2012.
Huntsman says 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) -- in which Huntsman's polyurethanes division is a leading global producer -- to create polyurethane foam insulation for walls, roofs, refrigerators and many other applications.
Oxid markets its diverse product line of specialty polyols under the trademark Terol and distributes products worldwide from its manufacturing facility in Houston.
"We are very pleased with the acquisition of Oxid," said Anthony P. Hankins, president of Huntsman's polyurethanes division.
"In the past 18 months we have strengthened our downstream capabilities with the acquisition and establishment of new systems houses in Turkey, Russia and Indonesia; acquired a 20% stake in Nippon Aqua Co., a Japanese spray polyurethane foam insulation company; we've commissioned a new, state-of-the-art MDI splitter and downstream manufacturing unit in Rotterdam, the Netherlands; and we've invested in the expansion of our worldscale MDI manufacturing facility in Geismar, Louisiana," he continued.
"These investments reflect our confidence in the long-term growth prospects for MDI-based urethanes, and the addition of Oxid's highly experienced team to our polyurethanes business will significantly strengthen our offer to the key downstream insulation markets both in North America and globally."