WILMINGTON
Ashland LLC which is a subsidiary of
Ashland Global Holdings Inc has signed a definitive agreement to sell its
performance adhesives business to Arkema.
The transaction
will be an all-cash transaction which is valued at approximately $1.65 billion.
The transaction will close by the end of this year. According to Guillermo Novo,
Chairman and Chief executive Officer, Ashland, Performance Adhesives is a
high-quality business. It has a dedicated team that has shown great financial
performance over the years. He also thanked the leadership team and employees
for their commitment and dedication to the company and its customers. He feels
that hat Arkema will be a great owner and will add value
for customers.
It is expected
that the net proceeds from the sale will be around $1.2 to $1.3 billion. The
company will also be in the condition to maintain a strong capital allocation
discipline by using these proceeds and it can also invest the same in the
growth of the core business.
According to
Novo, the company is excited about capital allocation discipline, capital
allocation discipline, and leadership position in the core market. He also said
that using its experience along with a more ESG-aligned portfolio, the company
will be able to provide exciting opportunities o create value for its
stakeholders, employees, customers, and shareholders.
The financial
advisor of Ashland is Citi and the legal advisors are Cravath, Swaine &
Moore LLP and Squire Patton Boggs LLP.
Source – Investor Ashland
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