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Home / News / Ashland to sell composites biz to Ineos for $1.1 bn

Ashland to sell composites biz to Ineos for $1.1 bn

24
Nov '18
Courtesy: Ashland
Courtesy: Ashland
Ashland Global Holdings Inc has signed an agreement to sell its composites business and the butanediol (BDO) manufacturing facility in Marl, Germany, to Ineos Enterprises in a transaction valued at approximately $1.1 billion. The transaction is expected to close prior to end of June 2019 quarter, based on certain customary regulatory approvals.

Ashland’s composites unit is a global leader in 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 (I&S) segment. Ashland’s Composites and Marl BDO facility have combined sales of more than $1.1 billion per year. Ashland will retain its BDO plant in Lima, Ohio, to ensure consistent supply for the company’s internal needs, the company said in a media statement.

Privately owned Ineos is one of the world’s largest manufacturers of chemicals and oil products, with annual sales of $60 billion. The London-based company operates 171 sites in 24 countries.

“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. Over the past two years, we have taken specific actions to sustain and grow Ashland’s premium mix while also improving our competitiveness, particularly within specialty ingredients. These actions are driving strong earnings growth, as evident in our fiscal 2018 financial results.”

“We believe that the Ashland Composites business will have great potential for growth under Ineos ownership and we are looking forward to working with a great team of people who are determined to meet the developing needs of our customers,” said Ashley Reed, CEO, Ineos Enterprises. (PC)

Fibre2Fashion News Desk – India

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