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Ashland to sell performance adhesives to Arkema for $1.65B

Sep 03, 2021
Ashland to sell performance adhesives to Arkema for $1.65B

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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