05 November 2004
05 November 2004
Ashland Composite Polymers has expanded its technology assets by signing an agreement to purchase the Derakane epoxy vinyl ester resin business from The Dow Chemical Company in a transaction valued at approximately $92 million (USD).
Annual sales of Derakane resins are approximated at $70 million (USD). The proven performance of Derakane and Derakane Momentum technologies for use in fibre reinforced plastics (FRP) applications requiring outstanding corrosion resistance and structural strength complements Ashland’s current product portfolio of thermoset resins.
“Over the past two years, Ashland has spent a significant amount of time refining its portfolio of businesses and focusing on technologies – such as thermoset chemistries – that are core to the company’s long-term, strategic focus,” said Ted Harris, vice president, Ashland Specialty Chemical, and general manager, Composite Polymers. “Ashland’s purchase of the Derakane resin business is in direct alignment with our long-term strategy to develop integrated systems and technology solutions that offer superior value to our customers.”
“We successfully built the Derakane business into a global industry leader,” said Juan Antonio Merino, general manager of Dow’s Thermoset Systems business. “However, in today’s environment, continued success would require us to broaden our market participation and product offering. This would involve investing in polyester, which lies outside of our established core capabilities. We are pleased to have found a strategic buyer with the business model required to strengthen and maximize the value of the business and give customers a strong and proven supplier for the future. We will work with Ashland and customers to ensure a smooth transition.”
The purchase includes all technology assets associated with the Derakane business. No physical assets will transfer to Ashland. The closing, which is anticipated to take place in late 2004 or early 2005, is conditional upon a number of standard closing conditions, including several regulatory reviews.