Specialty chemicals company Ashland has completed its acquisition of International Specialty Products or ISP, a privately owned specialty chemical manufacturer, for about $3.2 billion in cash.

"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 chief executive officer.

ISP will be integrated into the Ashland Aqualon Functional Ingredients commercial unit. Effective immediately, the combined unit will be called Ashland Specialty Ingredients. Going forward, Ashland Specialty Ingredients 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, the company said.

Ashland said that 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 $50 million in annual run-rate savings by the end of the second year through eliminating redundancies and capturing operational efficiencies.

In May, Ashland had said that it agreed to buy International Specialty Products for about $3.2 billion in cash.