Ashland completes sale of Performance Adhesives business to Arkema for $1.65 billion
February 28 2022 - 04:15PM
Ashland Global Holdings Inc. (NYSE: ASH) today announced it has
completed the previously announced sale of its Performance
Adhesives business to Arkema in an all-cash transaction valued at
approximately $1.65 billion.
Ashland expects net proceeds from the sale to
total approximately $1.2 to $1.3 billion. The company
will maintain strong capital allocation discipline using the
proceeds to invest in the growth of core businesses as well as
optimize its balance sheet and reward shareholders.
"The sale of our Performance Adhesives
business completes our journey as a focused additive and
specialty ingredients company with leadership positions in life
sciences, personal care and coatings,” said Guillermo Novo, chair
and chief executive officer, Ashland. “I am excited about our
future and the quality of our additives and specialty ingredients
portfolio and our leadership position in the core markets we
serve.”
Citi was the financial advisor and Cravath,
Swaine & Moore LLP and Squire Patton Boggs LLP acted as legal
advisors to Ashland.
Forward-looking statementsThis
news release contains forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933, as amended and
Section 21E of the Securities Exchange Act of 1934, as amended.
Ashland has identified some of these forward-looking statements
with words such as “anticipates,” “believes,” “expects,”
“estimates,” “is likely,” “predicts,” “projects,” “forecasts,”
“objectives,” “may,” “will,” “should,” “plans” and “intends” and
the negative of these words or other comparable terminology.
Ashland may from time to time make forward-looking statements in
its annual reports, quarterly reports and other filings with the
U.S. Securities and Exchange Commission (SEC), news releases and
other written and oral communications. These forward-looking
statements are based on Ashland’s expectations and assumptions, as
of the date such statements are made, regarding Ashland’s future
operating performance, financial condition, and expected effects of
the COVID-19 pandemic on Ashland’s business, as well as the economy
and other future events or circumstances. These statements include
but may not be limited to Ashland’s expectations regarding its
ability to drive sales and earnings growth, realize further cost
reductions and realize capital allocation plans with respect to the
use of proceeds from business divestments.
Ashland’s expectations and assumptions include,
without limitation, internal forecasts and analyses of current and
future market conditions and trends, management plans and
strategies, operating efficiencies and economic conditions (such as
prices, supply and demand, cost of raw materials, and the ability
to recover raw-material cost increases through price increases),
and risks and uncertainties associated with the following: the
impact of acquisitions and/or divestitures Ashland has made or may
make (including the possibility that Ashland may not realize the
anticipated benefits from such transactions and may not
successfully execute the expressed capital allocation plans with
the use of the proceeds from such divestments); Ashland’s
substantial indebtedness (including the possibility that such
indebtedness and related restrictive covenants may adversely affect
Ashland’s future cash flows, results of operations, financial
condition and its ability to repay debt); severe weather, natural
disasters, public-health crises (including the current COVID-19
pandemic), cyber events and legal proceedings and claims (including
product recalls, environmental and asbestos matters); the effects
of the COVID-19 pandemic on the geographies in which we operate,
the end markets we serve and on our supply chain and customers, and
without limitation, risks and uncertainties affecting Ashland that
are described in Ashland’s most recent Form 10-K (including Item 1A
Risk Factors) filed with the SEC, which is available on Ashland’s
website at http://investor.ashland.com or on the SEC’s website at
http://www.sec.gov. Various risks and uncertainties may cause
actual results to differ materially from those stated, projected or
implied by any forward-looking statements. The extent and duration
of the COVID-19 pandemic on our business and operations is
uncertain. Factors that will influence the impact on our business
and operations include the duration and extent of the pandemic, the
extent of imposed or recommended containment and mitigation
measures, and the general economic consequences of the pandemic.
Ashland believes its expectations and assumptions are reasonable,
but there can be no assurance that the expectations reflected
herein will be achieved. Unless legally required, Ashland
undertakes no obligation to update any forward-looking statements
made in this news release whether as a result of new information,
future events or otherwise.
About Ashland
Ashland Global Holdings Inc. (NYSE: ASH) is a premier additives and
specialty ingredients company with a conscious and proactive
mindset for sustainability. The company serves customers in a wide
range of consumer and industrial markets, including architectural
coatings, automotive, construction, energy, food and beverage,
nutraceuticals, personal care and pharmaceutical. Approximately
3,800 passionate, tenacious solvers – from renowned scientists and
research chemists to talented engineers and plant operators –
thrive on developing practical, innovative and elegant solutions to
complex problems for customers in more than 100 countries.
Visit Ashland.ashland.com and ashland.com/sustainability
to learn more.
™ Trademark, Ashland or its subsidiaries,
registered in various countries.
FOR FURTHER INFORMATION:
Investor Relations: |
Media Relations: |
Seth A. Mrozek |
Carolmarie C. Brown |
+1 (302) 594-5010 |
+1 (302) 995-3158 |
samrozek@ashland.com |
ccbrown@ashland.com |
- Ashland completes sale of performance adhesives business to
Arkema FNL 20220228
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