LIMA — Ashland Global Holdings Inc. recently signed an agreement to sell its Composites business and the butanediol facility in Marl, Germany to INEOS Enterprises.
Ashland will keep its BDO plant in Lima to ensure consistent supply for the company’s internal needs, according to a news release.
The $1.1 billion deal is expected to be finished by the end of June. The sale is contingent on specific customary regulatory approvals, completion of employee information, closing conditions and the consultation process.
Proceeds will go toward debt reduction, according to a news release.
“Composites and Marl are outstanding businesses with strong market positions and high-performing teams,” stated Ashland chairman and chief executive officer Bill Wulfsohn in a news release. “With a more streamlined and focused product portfolio, improved margins and reduced earnings volatility, Ashland will be better positioned to deliver sustained earnings growth and unlock significant value for shareholders.”
Ashland Global Holdings Inc. is a global specialty chemicals company based in Covington, Kentucky. INEOS Enterprises is a multinational chemicals company based in London.
“We believe that the Ashland Composites business will have great potential for growth under INEOS ownership and we are looking forward to working with a great team of people who are determined to meet the developing needs of our customers,” stated CEO of INEOS Enterprises Ashley Reed in a news release.