Ashland Global Holdings announced a strategic review of its performance adhesives business unit. Ashland intends to evaluate all options with respect to the business unit, including a potential sale.
The decision is consistent with the company’s strategy to grow its integrated additive ingredients portfolio focused on its leadership positions in its core pharma, personal care, and coatings businesses.
Offering Solutions for Niche Markets
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Ashland’s performance adhesives business unit has demonstrated exceptional financial performance with a strong and dedicated business team who excel at solutions in key niche markets,” said Guillermo Novo, chairman and chief executive officer, Ashland. “
The business has valuable products with differentiating performance for customers across a variety of applications and markets. The team has recently introduced innovations which provide exciting growth potential for this unique business.”
Novo said he expects the combination of strong financing availability, low interest rates and improving global macroeconomic conditions to create a supportive backdrop for a potential sale of the business unit.
Increasing Capital Deployment toward Core Additives Portfolio
The company plans to increase capital deployment toward its core
additives portfolio consisting of life sciences, personal care and household and specialty additives. Priority will be given to expand its high-value pharmaceuticals and personal care businesses, to enhance shareholder value through improved margins and focused growth capital deployment, including potential bolt-on acquisitions.
Ashland recently acquired the Schülke & Mayr personal care business which underscores the company’s strategy for growth in its core end-markets. The integration is proceeding as planned.
As Ashland continues to intensify its commitment to environment, social and governance (ESG), the company is increasing its development of differentiated ingredients innovations and unique custom specialty solutions for responsible growth aligned with consumer market trends. Sustainably solving complex challenges for customers will help further amplify the efficacy, refine the usability, add to the allure, ensure the integrity, and improve the profitability of their products and applications.
Ashland anticipates completing the strategic review by the end of calendar year 2021. The company has retained Citi to assist in the strategic review process.
Source: Ashland Global Holdings