INEOS To Buy Ashland Composites Business
INEOS a UK based firm has agreed to buy composite business of Ashland a US based firm for around $1.1 billion. In the prescribed deal INEOS would get around 20 manufacturing sites of the composite business of Ashland. These sites are located in various geographies such as, Middle East, Asia, North America, Europe and South America. Also, Ashland’s Germany-based butanediol (BDO) facility is included in the deal that produces intermediates for high-performance polyesters and polyurethanes. The unit is located in Marl, Germany.
The agreement is expected to be completed by early half of 2019 owing to regulatory approval and consultation. Debt reduction is the first objective after the proceedings. As per Ashland’s CEO, both composite and butanediol are major business with strong market position and is run by a very effective team. The divesture of these high performing business is going on As Ashland wants to be the leader in specialty chemicals. Also, with focused strong product portfolio and reduced margins along with constant earnings will lead Ashland to perform better and showcase better and sustained earning growth and value for shareholders.
About Ashland: It is an American chemical company in Kentucky. Its is specialty chemical company operating in around 100 countries. The major division of the firm currently include Industrial Specialties, Personal and Home care, Pharmaceuticals, Agriculture, Food & Beverage, Composites, Chemical Intermediates and solvents.
About INEOS: It is privately owned multi national firm which is headquarter in London, UK. It is said to be one of the top chemical manufacturing frim when measured by sales revenue. It has around 20 in house businesses that have their own separate management and operational areas.
— Vasundhra Singh,
Assistant Research Executive,