International. Ashland has signed a definitive agreement to sell its Composites business and butanediol manufacturing facility (BDO) in Marl, Germany, to INEOS Enterprises.
The transaction, valued at approximately $1.1 billion, is expected to close before the end of the June 2019 quarter, depending on certain customary regulatory approvals, standard closing conditions, and the completion of required employee information and consultation processes.
According to the company, Ashland expects net proceeds from the sale to total approximately $1 billion and anticipates that the proceeds will be used primarily for debt reduction.
Ashland Composites include unsaturated polyester resins, vinyl ester resins and gel layers, while BDO's facilities in Germany and related commercial products included in the agreement are part of Ashland's Intermediates and Solvents segment. Ashland's Composites and Marl BDO facilities have combined sales of more than $1.1 billion per year and approximately 1,300 employees. Ashland will reportedly retain its BDO plant in Lima, Ohio, to ensure consistent supply for the company's internal needs.
