Ashland Inc., a leader in specialty chemical solutions for consumer and industrial markets, has completed its acquisition of privately owned International Specialty Products Inc. (ISP), a global specialty chemical manufacturer of functional ingredients and technologies. The purchase was an all-cash transaction for $3.2 billion, subject to post-closing adjustments for changes in net working capital and certain other items.
“This defining transaction is expected to be immediately accretive and will significantly expand our position in higher-margin, higher-growth end markets, including personal care, pharmaceutical, food and beverage, and energy,” said James J. O’Brien, Ashland Chairman and CEO. “We are excited about combining ISP’s technologies and capabilities with our own. This acquisition enhances our ability to satisfy the increasing global demand for more technologically advanced consumer and industrial products, and to continue to generate industry-leading innovation and solutions for our customers.”
ISP will be integrated into the Ashland Aqualon Functional Ingredients commercial unit, more than doubling the size of Ashland’s highest-margin business. Effective immediately, the combined unit will be called Ashland Specialty Ingredients. An integration team with key representatives of both companies is being led by John Panichella, President of the new Ashland Specialty Ingredients business.