Huntsman to Acquire Texas-based Urethane Polyol Manufacturer Oxid

THE WOODLANDS, Texas -- Huntsman Corporation (NYSE: HUN) has signed a definitive agreement to acquire the business of Oxid L.P., a privately-held manufacturer and marketer of specialty urethane polyols based in Houston, Texas. The financial terms of the agreement were not disclosed.

Oxids 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 Huntsmans 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.

Commenting on the planned acquisition, Anthony P. Hankins, President of Huntsmans Polyurethanes division, said: "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.

"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 and will be immediately accretive to Huntsmans earnings. Oxid generated $86 million of revenue in 2012.

About Oxid