Ashland Agrees to Sell Its Electronic Chemicals Business Group to Air Products

01-Jul-2003

Ashland Inc. announced today it has signed a definitive agreement to sell the net assets of its Electronic chemicals business and certain related subsidiaries to Air Products in a transaction valued at approximately $300 million before tax. Ashland's after-tax proceeds will be used primarily to reduce debt.

"This transaction will be a win for all parties," said James J. O'Brien, Ashland Chairman and Chief Executive Officer, in announcing the agreement. "Air Products benefits through business expansion, and the outlook for the Electronic Chemicals business and employees is much stronger as part of an organization that is targeting growth in the semiconductor industry."

O'Brien added that the transaction furthers the profitability improvement plan he announced in October. "The sale of the Electronic Chemicals business reflects our strategy to optimize our business mix and focus greater attention on the remaining specialty chemical businesses and other transportation- related and construction operations where we can achieve strategic advantage. The transaction moves us significantly closer to our goal of reducing debt to 35 percent of total capital," O'Brien said. He confirmed the company expects to reach that target in fiscal 2004.

Ashland expects the transaction to close within 60 days. Both Ashland and Air Products expect a seamless transition with no disruption in customer service or supply. The agreement calls for Ashland to provide certain administrative services during the transition period. Air Products will assume operations at manufacturing and sales facilities upon closing. The closing is conditional upon a number of standard closing conditions, including several regulatory reviews.

https://www.chemeurope.com/en/news/24645/ashland-agrees-to-sell-its-electronic-chemicals-business-group-to-air-products.html