Specialty materials firm Ashland Global Holdings entered into an agreement to sell its maleic anhydride business to AOC Materials LLC, the company announced Monday. The $100 million deal includes a manufacturing plant in Neal, WV.
“Today’s announcement furthers Ashland’s strategic focus to streamline our portfolio and to focus on specialty ingredients and improved margins,” Guillermo Novo, chairman and chief executive officer of Ashland, said in a statement. “The Maleic business and its respective employees have made important contributions to Ashland, and AOC will take a strategic view of the business to drive growth and continue their success.”
Ashland retained the maleic anhydride business during the divestment of its Ashland Composites business to INEOS. The product is used in coatings and polymer applications.
“We are delighted to have this business as a part of our company and welcome the employees who have made it successful to the AOC family,” said Joe Salley, CEO of AOC, in the release. “We are excited about the growth prospects, not only as a source for our internal consumption but also for the merchant market as well.”
The transaction is expected to close before the end of this year.