) has agreed to buy privately-held specialty urethane polyols
maker Oxid L.P. for an undisclosed price.
Tex.-based Oxid, which has annual sales of $86 million, makes
specialty chemical products for the urethane industry. The entity
markets its diverse product line of specialty polyols under the
Terol moniker and distributes products globally from its
manufacturing plant in Houston.
Polyols made by Oxid represent a major component in the
manufacturing of energy saving polyurethane insulation products
used in residential and commercial construction. They are
integrated with methylene diphenyl diisocyanate (MDI) to create
polyurethane foam insulation for a range of applications.
Huntsman's Polyurethanes division is a leading producer of
The acquisition, which is expected to consummate during the
third quarter, is expected to be immediately accretive to
Huntsman's earnings. The addition of Oxid's Terol specialty
polyols to Huntsman's MDI product range will enhance the latter's
offerings to the key downstream insulation markets in North
America and usher in fresh opportunities globally.
With the U.S. housing and construction markets gathering
steam, Huntsman seeks to leverage the significant benefits of MDI
polyurethanes insulation. Oxid acquisition is expected to
reinforce its position and offer healthy market and technology
Huntsman, which has annual sales of more than $11 billion,
makes differentiated chemicals. Its makes products for an array
of industries including chemicals, plastics, automotive,
aviation, textiles, paints and coatings, construction,
technology, agriculture, health care, appliances and
Huntsman, in Mar 2013, bought a 20% stake in Japan-based spray
polyurethane foam insulation company Nippon Aqua Co. Ltd. Nippon
Aqua is the market leader in spray polyurethane foam insulation
in Japan. Huntsman supplies a number of advanced MDI-based
polyurethanes systems to Nippon Aqua.
The investment in Nippon Aqua will allow Huntsman to address
the significant need for more effective insulation in Japan
following the Fukushima Daiichi nuclear plant disaster in
Huntsman currently carries a short-term (1 to 3 months) Zacks
Rank #4 (Sell).
Other companies in the chemical space having favorable Zacks
Cytec Industries Inc.
PPG Industries Inc.
). All of them retain a Zacks Rank #2 (Buy).
ARKEMA-ADR (ARKAY): Get Free Report
CYTEC INDS INC (CYT): Free Stock Analysis
HUNTSMAN CORP (HUN): Free Stock Analysis
PPG INDS INC (PPG): Free Stock Analysis
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