Ashland sells composites business and BDO plant for $1.1 billion
On November 15, Ashland Global Holdings announced that it has signed a definitive agreement to sell the composites business and the German Mardindiol (BDO) production plant to INEOS for approximately US$1.1 billion. The transaction is expected to be completed by the end of June 2019.
According to Ashland, the total net income from the sale of the business is about $1 billion. As expected, this income will be used primarily to repay debt.
Ashland's composites division includes unsaturated polyester resins, vinyl ester resins and gel coats, while the commercial products involved in the butanediol plant and agreement in Marl, Germany, are part of Ashland Intermediates and Solvents (l&S) department. The Ashland Composites business and the German BDO plant have annual sales of more than $1.1 billion and employ approximately 1,300 people.
Ashland said it will retain its butanediol (BDO) plant in Lima, Ohio, USA, to ensure that it continues to meet the company's internal needs.
Ash Wulfsohn, Chairman and CEO of Ashland, said: “The composites and Mars have outstanding performance, have a solid market position and a high-performance team, and the divestiture of these businesses is Ashland's top specialty chemicals. The company's efforts. By designing a leaner, more focused product portfolio that increases profitability and reduces revenue volatility, Ashland will be better able to create sustainable earnings growth and provide greater value to shareholders. During the year, Ashland took a number of measures to maintain the continued growth of its high-end product portfolio while enhancing the company's competitiveness, especially in the specialty additives sector. These initiatives have resulted in strong earnings growth, Ashland 2018 The financial performance of the fiscal year is the best proof."
INEOS is one of the world's largest manufacturers of chemicals and petroleum products with annual sales of $60 billion and approximately 20,000 employees. The private company is headquartered in London, England and has 171 branches in 24 countries.
