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Ashland Sells Composites Business to INEOS for $1.1B
November 15, 2018
2 Min Read
Chemicals and oil products firm INEOS recently entered into an agreement to acquire Ashland Global Holdings Inc.’s composites business for about $1.1 billion, the firms announced in a release Thursday.
“Ashland’s composite resins have been the materials of choice for the world’s boat builders for 30 years, and for good reason. They are light, strong, and resistant to attack from chemicals and even fire. Unlike wood they don’t rot, unlike metal they don’t corrode, and unlike concrete they don’t crack,” said Ashley Reed, chief executive officer of INEOS Enterprises, in a statement. “We believe that they have great potential for growth under INEOS ownership.”
Employing some 1300 people at 20 sites in Europe, North America, South America, Asia, and the Middle East, Ashland’s composites unit produces unsaturated polyester resins, vinyl ester resins, corrosion-resistant fiberglass reinforced plastic (FRP), and gel coats.
“Composites and Marl are outstanding businesses with strong market positions and high-performing teams. At the same time, the divestiture of these businesses is consistent with Ashland’s vision of becoming the premier specialty chemicals company,” Bill Wulfsohn, chairman and chief executive officer of Ashland, said in the release. “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.”
Under the terms of the deal, INEOS will also assume ownership of a BDO plant in Germany that produces intermediates for polyesters and polyurethanes. The companies expect the sale to close some time in the first half of next year.
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