Ashland will acquire specialty chemical manufacturer International Specialty Products for $3.2 billion cash, expanding Ashlands position in high-growth markets such as personal care and pharmaceutical.
The transaction is expected to close prior to the end of the quarter ending in September, which is the fourth quarter of Ashlands fiscal year.
This defining transaction enables us to significantly expand our market positions in higher margin, higher growth and less cyclical global markets like personal care and pharmaceuticals, said Chairman and CEO James OBrien of Ashland of Covington, Ky. In addition, we expect to more than double the size of our highest-margin functional ingredients business. The company also expects the acquisition to strengthen Ashlands functional ingredients active patent portfolio, and its team of research and development scientists.
Wayne, N.J.-headquartered ISPs key products include biocides, solvents, polymers and monomers.
Ashlands commercial units include its Consumer Markets (which makes Valvoline lubricants), Functional Ingredients, Water Technologies and Performance Materials units.