Houston-based Oxid, a product developer in the urethane industry, will be acquired by Salt Lake City-based chemical manufacturer Huntsman (NYSE:HUN) for an undisclosed amount, Huntsman announced today.

The urethane polyols manufactured by Oxid are used in residential and commercial insulation products, a market Huntsman expects to grow as the construction and housing markets gather momentum. The additional product line gained with the Oxid acquisition will allow Huntsman to "leverage the significant benefits of MDI polyurethanes insulation and this acquisition will strengthen our position considerably," according to Anthony Hankins, president of Huntsman's polyurethane division.

Oxid generated approximately $86 million in revenue in 2012, selling a line of specialty polyols, including its registered Terol brand name. Huntsman employs approximately 12,000 worldwide, and generated more than $11 billion in revenues in 2012.

The deal is expected to close in the third quarter, and is expected to be immediately accretive to Huntsman's earnings.

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