Ashland completes acquisition of Pharmachem Laboratories, a leading international provider of branded nutritional and fragran...
May 17 2017 - 2:59PM
COVINGTON, KY, May 17, 2017 -
Ashland Global Holdings Inc. (NYSE: ASH) today announced that its
subsidiary has completed the previously announced acquisition of
privately owned Pharmachem Laboratories, Inc., a leading provider
of quality ingredients to the global health and wellness industries
and high-value differentiated products to fragrance and flavor
houses. Under terms of the stock purchase agreement, Ashland paid
$660 million in an all-cash transaction, funded from a combination
of cash on hand and proceeds of a borrowing under its existing
securitization facility, a new 3-year senior secured term loan A
facility, a new 5-year senior secured term loan facility and a new
5-year senior secured revolving credit facility. The acquisition is
expected to be accretive to Ashland's earnings per share in the
first year following the close of the transaction.
With annual revenues of
approximately $300 million and 14 manufacturing facilities in the
United States and Mexico, New Jersey-based Pharmachem develops,
manufactures and supplies custom and branded nutritional and
fragrance products.
"The addition of Pharmachem offers
attractive growth opportunities in higher-margin end markets and
strengthens our existing business with advanced processing know-how
and formulation expertise," said William A. Wulfsohn, Ashland
chairman and chief executive officer. "We believe this combination
will enhance our position in fast-growing nutraceutical end
markets, open a new opportunity within fragrances and flavors, and
strengthen Ashland's food ingredient business by adding customized
functional solutions. In addition, we expect to leverage our
extensive sales channels, technical service network and global
applications labs to accelerate Pharmachem's growth."
About Ashland
Ashland Global Holdings Inc. (NYSE: ASH) is a premier global
specialty chemicals company serving customers in a wide range of
consumer and industrial markets, including adhesives, architectural
coatings, automotive, construction, energy, food and beverage,
personal care and pharmaceutical. At Ashland, we are nearly 7,000
passionate, tenacious solvers - from renowned scientists and
research chemists to talented engineers and plant operators - who
thrive on developing practical, innovative and elegant solutions to
complex problems for customers in more than 100 countries.
Visit ashland.com to learn more.
C-ASH
Forward-Looking
Statements
This 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. These forward-looking statements
include statements relating to our expectation that the acquisition
of Pharmachem Laboratories, Inc. (Pharmachem) will be accretive to
earnings per share. In addition, Ashland may from time to time make
forward-looking statements in its annual reports, quarterly reports
and other filings with the 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 and financial condition. 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: Ashland's substantial indebtedness (including
the indebtedness that Ashland has incurred to finance the
acquisition of Pharmachem and the possibility that Ashland's
substantial indebtedness and related restrictive covenants may
adversely affect Ashland's future cash flows, results of
operations, financial condition and its ability to repay debt); the
impact of acquisitions and/or divestitures Ashland has made or may
make, including the acquisition of Pharmachem (including the
possibility that Ashland may not realize the anticipated benefits
of such transactions, such as the expected sales and growth
opportunities, synergies and cost savings and the ability of
Ashland to integrate the businesses of Pharmachem successfully and
efficiently with Ashland's businesses); and severe weather, natural
disasters, and legal proceedings and claims (including
environmental and asbestos matters). Various risks and
uncertainties may cause actual results to differ materially from
those stated, projected or implied by any forward-looking
statements, including, 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. 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.
Information on Ashland's and Pharmachem's websites is not
incorporated into or a part of this news release.
(TM) Trademark, Ashland or its
subsidiaries, registered in various countries.
FOR FURTHER
INFORMATION:
Investor Relations:
Seth A.
Mrozek
+1 (859) 815-3527
samrozek@ashland.com
Media Relations:
Gary Rhodes
+1 (859) 815-3047
glrhodes@ashland.com
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Ashland Inc. via Globenewswire
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