Ashland to divest industrial biocides assets to Troy Corporation
May 29 2015 - 8:01AM
Sale of non-core product line
expected to close within 60 days
May 29, 2015
COVINGTON, Ky. - Ashland Inc.
(NYSE: ASH) today announced that it has signed a definitive
agreement to sell the industrial biocides assets within Ashland
Specialty Ingredients to Troy Corporation, a global leader in
microbial control products and performance additives. The
transaction is expected to close within 60 days, contingent on
standard closing conditions and completion of required employee
information and consultation processes. Financial terms were not
disclosed.
Industrial biocides - which help
control and prevent the growth of bacteria, mold and other
microorganisms in a wide range of coatings, construction materials
and energy products - accounted for approximately two percent of
Specialty Ingredients' sales for the 12 months ended March 31,
2015.
Specialty Ingredients' lineup of
preservatives products, which is focused on consumer markets, is
excluded from the agreement with Troy. Ashland is committed to
retaining and growing that strategic business.
"This divestiture reflects our
continued focus on driving growth within the higher-margin core
businesses where we offer greater value to our customers," said
Luis Fernandez-Moreno, Ashland senior vice president and president
of Ashland's Chemicals Group. "As a smaller player within the
industrial biocides market, Ashland has lacked the critical mass
needed to be successful. Troy is better positioned to capitalize on
growth opportunities within this segment and we are committed to
working with them to ensure a seamless transition for our
industrial biocides employees and customers."
"Troy prides itself on innovation
and premium service to its customers," said W. Brian Smith, Vice
President, Troy Corporation. "With the addition of Ashland's
industrial biocides business, Troy's premier portfolio of
preservatives will be enhanced, delivering even more value,
performance, and sustainability to the marketplaces served."
About
Troy
Troy Corporation develops and manufactures specialty materials that
enhance the properties and performance of its customers' products
and processes, and is committed to helping manufacturers meet
global requirements for compliance and sustainability. Founded in
1950, Troy is headquartered in Florham Park, New Jersey, with sales
offices throughout the United States, Canada, Europe, Asia, and
Latin America. Troy materials are used and available in over 100
countries worldwide.
About Ashland
Ashland Inc. (NYSE: ASH) is a global leader in providing specialty
chemical solutions to customers in a wide range of consumer and
industrial markets, including architectural coatings, automotive,
construction, energy, food and beverage, personal care and
pharmaceutical. Through our three commercial units - Ashland
Specialty Ingredients, Ashland Performance Materials and Valvoline
- we use good chemistry to make great things happen for customers
in more than 100 countries. Visit ashland.com to learn more.
- 0 -
C-ASH
Forward-Looking
Statements
This news release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. Ashland has identified
some of these forward-looking statements with words such as
"anticipates," "believes," "expects," "estimates," "is
likely," "predicts," "projects," "may," "will," "should" and
"intends" and the negative of these words or other comparable
terminology. In addition, Ashland may from time to time make
forward-looking statements in its annual report, quarterly reports
and other filings with the 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 and
financial condition, the economy and other future events or
circumstances. 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 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); 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); the global
restructuring program (including the possibility that Ashland may
not achieve the anticipated revenue and earnings growth, cost
reductions, and other expected benefits from the program),
Ashland's ability to generate sufficient cash to finance its stock
repurchase plans, 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 contained in its 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 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.
FOR FURTHER
INFORMATION:
Ashland Media Relations:
Gary
Rhodes
+1 (859)
815-3047
glrhodes@ashland.com
Ashland Investor Relations:
Jason
Thompson
+1 (859) 815-4454
jlthompson@ashland.com
Troy Corporation
Geoff Clay
+1 (973) 443-4200, ext. 2581
clayg@troycorp.com
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX 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
HUG#1924792
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