INEOS to acquire the Ashland Composites Business for $ 1.1 billion
The deal comprises 20 manufacturing sites in Europe, North and South America, Asia and Middle East employing 1300 people, generating sales of more than $1.1 bn.
INEOS Enterprises has today agreed to acquire the entire composites business from Ashland Global Holdings Inc. (NYSE: ASH) for $1.1 billion. The businesses included in the transaction have combined sales of more than $1.1 billion per year. They employ 1,300 employees across 20 sites in Europe, North and South America, Asia and Middle East.
The deal, is expected to complete in the first half of 2019, subject to regulatory approval and consultation processes.
Ashley Reed, CEO INEOS Enterprises said, “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. We believe that they 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.”
Ashland’s Composites Business is a global leader in unsaturated polyester resins, vinyl ester resins and gel coats. In addition to its wide range of gelcoats, the business also provides corrosion-resistant fiberglass reinforced plastic (FRP) which provide exceptional durability, superior heat resistance, low maintenance and high performance for challenging environments.
Bill Wulfsohn, Ashland chairman and chief executive officer said, “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. 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.”
The deal also includes a BDO facility in Germany producing key intermediates for high performance polyesters and polyurethanes.
Valence acted as Financial advisors to INEOS. DLA Piper provided legal guidance and PwC provided finance and accounting support.
ENDS
FOR FURTHER INFORMATION:
Richard Longden (INEOS) 0041 21 627 7063 or 0041 7996 26123
Andrew McLachlan (Media Zoo) 020 7384 6980 or 07931377162
Chris Hall (Media Zoo) 020 7384 6980 or 07739571634
Gary Rhodes (Media Relations, Ashland) +1 (859) 815-3047 glrhodes@ashland.com
Seth Mrozek (Investor Relations, Ashland) +1 (859) 815-3527 samrozek@ashland.com
Note to Editor
About INEOS
INEOS has grown from a single site, in Antwerp in 1998, originally employing 400 people with a turnover of €200m. Today, INEOS is one of the world’s largest chemicals companies and the 50th largest business in the world, employing around 20,000 people across 171 sites in 24 countries. It is a privately owned company with sales in 2017 of $60bn and EBITDA of $7bn. In addition to its growth in petrochemicals, it has acquired oil & gas fields in the UK, Denmark and Norway and is a top 10 company and the biggest private enterprise operating in the North Sea.
About INEOS Enterprises
INEOS Enterprises comprises a portfolio of businesses manufacturing chemical products in Northern Europe USA and Canada, with sales of €2bn around the world. The business is focused on the developing needs of its customers and rapid growth through investment in new products and manufacturing facilities or by acquisition. It employs c. 2,000 people across sites in the UK, Germany, Sweden, Switzerland, Canada and the USA. INEOS Enterprises is not part of the INEOS Group Holdings bank group. Visit ineosenterprises.com to learn more.
About Ashland
Ashland Global Holdings Inc. (NYSE: ASH) is a premier global specialty chemicals company serving 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. Ashland, comprises approximately 6,000 passionate, tenacious solvers – from renowned scientists and research chemists to talented engineers and plant operators – who thrive on developing practical, innovative and elegant solutions to complex problems for customers in more than 100 countries. Visit ashland.com to learn more.