) has completed its takeover of privately-held specialty urethane
polyols maker Oxid L.P. for a price of up to $75 million. The
company announced the deal in July.
Texas-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 is expected to be immediately accretive to
Huntsman's earnings. The addition of Oxid's Terol specialty
polyols to Huntsman's MDI product range enhances 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 reinforces its
position and offers healthy market and technology synergies.
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 allows Huntsman to address the
significant need for more effective insulation in Japan following
the Fukushima Daiichi nuclear plant disaster in 2011.
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 currently carries a short-term (1 to 3 months) Zacks
Rank #3 (Hold).
Other companies in the chemical space having favorable Zacks
Cytec Industries Inc.
Eastman Chemical Co.
). All of them hold a Zacks Rank #2 (Buy).
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