Ineos Enterprises has agreed a deal to acquire the entire composites business from Ashland Global Holdings for $1.1bn £859m.
The businesses included in the transaction have combined sales of more than $1.1bn (£859m) per year. They employ 1,300 employees across 20 sites in Europe, North and South America, Asia and Middle East.
The deal, is expected to complete in the first half of 2019, subject to regulatory approval and consultation processes.
Ashley Reed, CEO Ineos Enterprises, said: “Ashland’s composite resins have been the materials of choice for the world’s boat builders for 30 years, and for good reason. They are light, strong and resistant to attack from chemicals and even fire.
“Unlike wood they don’t rot, unlike metal they don’t corrode and unlike concrete they don’t crack. We believe that they 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.”
Ashland’s composites business is a global leader in unsaturated polyester resins, vinyl ester resins and gel coats. In addition to its wide range of gelcoats, the business also provides corrosion-resistant fiberglass reinforced plastic (FRP) which provide exceptional durability, superior heat resistance, low maintenance and high performance for challenging environments.
Bill Wulfsohn, Ashland chairman and chief executive officer added: “Composites and Marl are outstanding businesses with strong market positions and high-performing teams. 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.”
The deal also includes a BDO facility in Germany producing key intermediates for high performance polyesters and polyurethanes. Valence acted as Financial advisors to Ineos DLA Piper provided legal guidance and PwC provided finance and accounting support.