US-based chemicals firm Huntsman is buying another US supplier Oxid to expand its PU foam insulation business. Oxid's Terol polyols can be used in the production of energy-saving PU insulation products found in residential and commercial construction. The polyols are combined with methylene diphenyl diisocyanate (MDI) – in which Huntsman's Polyurethanes division is a global producer – to create PU foam insulation for walls, roofs, refrigerators and many other applications.

"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,” said Anthony P. Hankins, President of Huntsman's Polyurethanes division. “As growth in the US 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 2013. Terms were not disclosed. Oxid generated US$86 million of revenue in 2012.