Ashland Global Holdings Inc. (Wilmington, Del.) announced a definitive agreement to sell the company’s maleic anhydride business and manufacturing facility in Neal, West Virginia to AOC Materials LLC, for $100 million.
Maleic anhydride is manufactured industrially on a large scale for applications in coatings and polymers. The maleic anhydride business was previously excluded from the sale of Ashland’s Composites business and the butanediol (BDO) manufacturing facility in Marl, Germany, to INEOS Enterprises. The transaction with AOC is expected to close prior to the end of calendar year 2020, contingent on customary regulatory approvals and standard closing conditions.
“Today’s announcement furthers Ashland’s strategic focus to streamline our portfolio and to focus on specialty ingredients and improved margins,” said Guillermo Novo, chairman and chief executive officer, Ashland. “The Maleic business and its respective employees have made important contributions to Ashland, and AOC will take a strategic view of the business to drive growth and continue their success.”
“We are delighted to have this business as a part of our company and welcome the employees who have made it successful to the AOC family,” remarked Joe Salley, chief executive officer, AOC. “We are excited about the growth prospects, not only as a source for our internal consumption but also for the merchant market as well.”
Citi is acting as financial advisor to Ashland, and Squire Patton Boggs LLP is acting as legal advisor.