Displaying items by tag: Ashland
Ashland completes sale of Performance Adhesives business to Arkema for $1.65 billion
Ashland Global Holdings Inc. has just announced it has completed the previously announced sale of its Performance Adhesives business to Arkema in an all-cash transaction valued at approximately $1.65 billion.
Ashland expects net proceeds from the sale to total approximately $1.2 to $1.3 billion. The company will maintain strong capital allocation discipline using the proceeds to invest in the growth of core businesses as well as optimize its balance sheet and reward shareholders.
"The sale of our Performance Adhesives business completes our journey as a focused additive and specialty ingredients company with leadership positions in life sciences, personal care and coatings,” said Guillermo Novo, chair and chief executive officer, Ashland. “I am excited about our future and the quality of our additives and specialty ingredients portfolio and our leadership position in the core markets we serve.”
Citi was the financial advisor and Cravath, Swaine & Moore LLP and Squire Patton Boggs LLP acted as legal advisors to Ashland.
About Ashland
Ashland Global Holdings Inc. (NYSE: ASH) is a premier additives and specialty ingredients company with a conscious and proactive mindset for sustainability. The company serves customers in a wide range of consumer and industrial markets, including architectural coatings, automotive, construction, energy, food and beverage, nutraceuticals, personal care and pharmaceutical. Approximately 3,800 passionate, tenacious solvers – from renowned scientists and research chemists to talented engineers and plant operators – thrive on developing practical, innovative and elegant solutions to complex problems for customers in more than 100 countries. Visit Ashland.ashland.com and ashland.com/sustainability to learn more.
™ Trademark, Ashland or its subsidiaries, registered in various countries.
Ashland signs definitive agreement to sell performance adhesives business to Arkema for $1.65 billion
Upon completion of the sale, Ashland will be a focused additive and ingredients company with leadership positions in life sciences, personal care and coatings
Ashland Global Holdings Inc. (NYSE: ASH) announced today that its wholly owned subsidiary, Ashland LLC, has signed a definitive agreement to sell its performance adhesives business to Arkema in an all-cash transaction valued at approximately $1.65 billion or 20 times LTM EBITDA1. The transaction is expected to close by the end of calendar year 2021, subject to receipt of regulatory approvals and satisfaction of other customary closing conditions.
Ashland's performance adhesives business has a portfolio of products that are well positioned in the market and valuable technologies with differentiating performance for customers across a variety of applications and markets.
“Performance Adhesives is a high-quality business with a strong and dedicated team that has demonstrated consistent and exceptional financial performance over the years,” said Guillermo Novo, chairman and chief executive officer, Ashland. “I want to thank the leadership team and global employees for their dedication and commitment to Ashland and to our customers. I believe that Arkema will be a great owner of the business, creating value for customers and employees.”
Ashland expects net proceeds from the sale to total approximately $1.2 to $1.3 billion and the company will maintain strong capital allocation discipline using the proceeds to invest in the growth of core businesses as well as optimize its balance sheet and reward shareholders.
The company plans to hold an Investor Day later this year in which Novo and members of the executive team will present key business strategies and growth initiatives and outline expectations for Ashland's longer-term performance.
The transaction is driven by Ashland’s strategy to focus its resources on expanding its additive and ingredients portfolio which will be strongly aligned with long term environment, social and governance (ESG) drivers and with resilient high-quality consumer markets that value innovation.
“As we look to the future, we are excited about the quality of our additive and ingredients portfolio and our leadership position in the core markets we serve,” said Novo. “Our experience and innovation capabilities, together with a more ESG-aligned portfolio will provide exciting opportunities to create value for all of our stakeholders, especially our customers, employees and shareholders. As we execute our strategy to expand Ashland’s additive and ingredients leadership position, we will maintain capital allocation discipline and focus on our goals of driving profitable growth, margin expansion and improved free cash flow conversion."
Citi is acting as financial advisor to Ashland. Cravath, Swaine & Moore LLP and Squire Patton Boggs LLP are acting as legal advisors to Ashland.
About Ashland
Ashland Global Holdings Inc. (NYSE: ASH) is a premier specialty materials company with a conscious and proactive mindset for sustainability. The company serves customers in a wide range of consumer and industrial markets, including adhesives, architectural coatings, automotive, construction, energy, food and beverage, nutraceuticals, personal care and pharmaceutical. Approximately 4,200 passionate, tenacious solvers – from renowned scientists and research chemists to talented engineers and plant operators – thrive on developing practical, innovative and elegant solutions to complex problems for customers in more than 100 countries. Visit www.ashland.com and www.ashland.com/sustainability to learn more.
1 Based on EBITDA of $82 million for the performance adhesives business for the 12 months ended June 30, 2021. EBITDA represents operating income plus depreciation and amortization. EBITDA is a non-GAAP financial measure. See Ashland’s periodic reports on Form 10-K and 10-Q for reconciliations for the relevant periods.
™ Trademark, Ashland or its subsidiaries, registered in various countries.
Ashland to increase production capacity for Natrosol™ HEC at Nanjing, China site
Wilmington, Del., March 15, 2021 - Ashland Global Holdings Inc. (NYSE: ASH) has just announced the company plans to increase production capacity of Natrosol™ hydroxyethylcellulose (HEC) at the Nanjing, China site.
“Ashland Natrosol™ rheology modifiers have been the leading cellulosic thickeners for waterborne architectural coatings for more than fifty years,” said Guillermo Novo, chairman and chief executive officer, Ashland. “Given the unprecedented demand and our customer-centric strategy, Ashland will build upon our previous investments in Nanjing and further expand capacity. This demonstrates our commitment to invest in Asia. It also supports a key lever of Ashland’s growth strategy to ensure we can meet our customers’ growing needs and provide additional supply security across the globe.”
Natrosol™ HEC is a natural product, excellent thickening agent and used as a non-ionic rheology modifier in industrial and consumer focused applications. Ashland is the leading global producer of HEC and supplies essential ingredients for a wide range of industries including paints and coatings, construction, oil and gas, personal care and pharmaceutical. The company said the unprecedented demand is a result of consumer trends towards more sustainable solutions including water-based paint and a global increase in the building and construction industries and the desire for milder, natural and sustainable solutions in consumer markets.
About Ashland
Ashland Global Holdings Inc. (NYSE: ASH) is a premier specialty materials company with a conscious and proactive mindset for sustainability. The company serves customers in a wide range of consumer and industrial markets, including adhesives, architectural coatings, automotive, construction, energy, food and beverage, nutraceuticals, personal care and pharmaceutical. Approximately 4,200 passionate, tenacious solvers – from renowned scientists and research chemists to talented engineers and plant operators – thrive on developing practical, innovative and elegant solutions to complex
problems for customers in more than 100 countries. Visit ashland.com and ashland.com/sustainability to learn more.