Ineos buys Ashland’s composites business for $1 billion

Chemicals maker Ineos Enterprises is acquiring Ashland Global Holdings Inc.’s composites unit and butanediol (BDO) manufacturing facility in Marl, Germany for US$1.1 billion, chiefly for its resin business.

Ashland said the divestiture was a part of its plans to focus on specialty chemicals.

“Composites and Marl are outstanding businesses with strong market positions and high-performing teams,” said 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 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. 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.

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

Headquartered in Ashland, Ky., Ashland said its composites business is a global leader in unsaturated polyester resins, vinyl ester resins and gel coats. In addition, the unit also supplies corrosion-resistant fiberglass reinforced plastic (FRP) for challenging environments. Ashland’s BDO facility in Marl producing key intermediates for high performance polyesters and polyurethanes.

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