Ashland completes ISP acquisition

11 October 2011

Ashland Inc completed its acquisition, August 23, of privately owned International Specialty Products Inc (ISP). The purchase was an all-cash transaction for US$3.2bn, subject to post-closing adjustments for changes in net working capital and certain other items.
"This defining transaction is expected to be immediately accretive and will significantly expand our position in higher-margin, higher-growth end-markets, including personal care, pharmaceutical, food and beverage and energy,” said James J O’Brien, Ashland chairman and CEO. "We are excited about combining ISP’s technologies and capabilities with our own. This acquisition enhances our ability to satisfy the increasing global demand for more technologically advanced consumer and industrial products, and to continue to generate industry-leading innovation and solutions for our customers.”
ISP will be integrated into the Ashland Aqualon Functional Ingredients commercial unit, more than doubling the size of Ashland’s highest-margin business.
Effective immediately, the combined unit will be called Ashland Specialty Ingredients. The company is expected to contribute roughly half of Ashland’s EBITDA. In addition, approximately half of Ashland’s overall revenues will now be derived outside of North America.
An integration team with key representatives of both companies is being led by John Panichella, president of the new Ashland Specialty Ingredients business. Ashland anticipates approximately US$50M in annual run-rate savings by the end of the second year through eliminating redundancies and capturing operational efficiencies.

< Previous article

Nanotechnology and the Coatings Industry

Next article >

AkzoNobel & BioCote to create Interpon AM