The group said the move is consistent with its strategy to grow its integrated additive ingredients portfolio, focused on its leadership positions in its core pharma, personal care and coatings businesses. It has retained financial services group Citi to assist in the process and anticipates completing the review by the end of this year.
“Ashland’s performance adhesives business unit has demonstrated exceptional financial performance with a strong and dedicated business team who excel at solutions in key niche markets,” said chairman and CEO Guillermo Novo. “The business has valuable products with differentiating performance for customers across a variety of applications and markets. The team has recently introduced innovations which provide exciting growth potential for this unique business.”
Novo added that he expects the combination of strong financing availability, low interest rates and improving global macroeconomic conditions to create a supportive backdrop for a potential sale of the business.
Ashland plans to increase the use of its capital on its core additives portfolio, which comprises life sciences, personal care, household and specialty additives. The Wilmington, Delaware-headquartered firm said it will prioritize the expansion of its high-value pharma and personal care businesses, which will include bolt-on acquisitions.
On Apr. 30, Ashland completed the purchase of Schülke & Mayr’s personal care business, strengthening its consumer portfolio and enhancing its specialty additives position, while also expanding its biotechnology and microbiology technical competencies. “We will continue driving our strategy and focusing on bolt-on acquisitions that create new sustainable solutions in broader fields of application to deliver value to our customers,” Novo said.
Author: Elaine Burridge, Freelance Journalist
