Ashland Agrees to Sell Composites Business and Butanediol Facility in Germany

Ashland Global Holdings Inc. has signed a definitive agreement to sell its Composites business and the butanediol (BDO) manufacturing facility in Marl, Germany, to INEOS Enterprises. The transaction, valued at approximately $1.1 billion, is expected to close prior to the end of the June 2019 quarter, contingent on certain customary regulatory approvals, standard closing conditions, and completion of required employee information and consultation processes. According to the company, Ashland expects net proceeds from the sale to total approximately $1 billion and anticipates that proceeds primarily will be used for debt reduction.

Ashland’s Composites includes unsaturated polyester resins, vinyl ester resins and gel coats, while the BDO facility in Germany and related merchant products included in the agreement are part of Ashland’s Intermediates and Solvents segment. Ashland’s Composites and Marl BDO facility have combined sales of more than $1.1 billion per year and approximately 1,300 employees. Ashland will reportedly retain its BDO plant in Lima, Ohio, to ensure consistent supply for the company’s internal needs.

“Composites and Marl are outstanding businesses with strong market positions and high-performing teams,” said Bill Wulfsohn, Ashland chairman and chief executive officer. “At the same time, the divestiture of these businesses is consistent with Ashland’s vision of becoming the premier specialty chemicals company. With a more streamlined and focused product portfolio, improved margins, and reduced earnings volatility, Ashland will be better positioned to deliver sustained earnings growth and unlock significant value for shareholders.”

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from American Coatings Association https://www.paint.org/ashland-agrees-to-sell-composites-business-and-butanediol-facility-in-germany/
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