NetComposites
Airtech

Ashland to Sell Composites Business to INEOS Enterprises

27 November 2018

Ashland has signed a definitive agreement to sell its Composites business and the butanediol (BDO) manufacturing facility in Marl, Germany, to INEOS Enterprises in a transaction valued at approximately US$1.1 billion.

The transaction is expected to close prior to the end of the June 2019 quarter.

Ashland expects net proceeds from the sale to total approximately $1 billion and anticipates that proceeds primarily will be used for debt reduction.

Ashland's Composites unit is a global leader in unsaturated polyester resins, vinyl ester resins and gelcoats, while the BDO facility in Germany and related merchant products included in the agreement are part of Ashland's Intermediates and Solvents (I&S) segment. Ashland's Composites and Marl BDO facility have combined sales of more than $1.1 billion per year and approximately 1,300 employees. Ashland will retain its BDO plant in Lima, Ohio, US, to ensure consistent supply for the company's internal needs.

"Composites and Marl are outstanding businesses with strong market positions and high-performing teams," says Bill Wulfsohn, Ashland Chairman and CEO. "At the same time, the divestiture of these businesses is consistent with Ashland's vision of becoming the premier speciality 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. Over the past two years, we have taken specific actions to sustain and grow Ashland's premium mix while also improving our competitiveness, particularly within Specialty Ingredients. These actions are driving strong earnings growth, as evident in our fiscal 2018 financial results."

Privately-owned INEOS is one of the world's largest manufacturers of chemicals and oil products, with annual sales of $60 billion and approximately 20,000 employees. The London-based company operates 171 sites in 24 countries.

"We believe that the Ashland Composites business will 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," states Ashley Reed, CEO, INEOS Enterprises.





Share this story


Related / You might like...

Innovative Train Seat Support is JEC Award Finalist

A lightweight rail passenger seat support manufactured from a fire-resistant bio-resin prepreg has been nominated as a finalist in the Land Transportation Category of the 2019 JEC World Awards.

Covestro at JEC World 2019

Covestro says it has been committed to developing material solutions for composites for several years and is now a leading provider. The broad portfolio ranges from polycarbonate and polyurethane (PU) products to film formers for fibre sizings.

Reinventing the Wheel Is Possible With Graphene Nanotubes

Do you enjoy a cross-country ride on your bike on the weekend? Wouldn’t you appreciate a bike with higher performance and with safer and longer lasting rims? And ideally not at a jaw-dropping price. Graphene in the form of graphene nanotubes has shown huge potential for enhancing the properties and reducing the weight of bicycle wheel rims.