THE WHAT? Specialty ingredients supplier Ashland is reportedly exploring a potential sale after attracting takeover interest from strategic and financial buyers, including several major private equity firms.
THE DETAILS Ashland is working with Citigroup and Lazard as it considers approaches from potential suitors, according to Bloomberg. Private equity groups Advent, Apollo Global Management and Carlyle are among those reported to have made contact, while major Ashland shareholder Standard Industries is also said to be interested. The US company, which supplies specialty ingredients and additives to industries including personal care and pharmaceuticals, has a market value of approximately US$3.5 billion. The review follows pressure from activist investor Ancora Holdings Group, which had called for Ashland to pursue a sale. Discussions remain ongoing and there is no certainty that they will result in a transaction.
THE WHY? A change of ownership would be significant for the beauty and personal care ingredients sector, where Ashland is an established supplier of specialty ingredients and formulation technologies. The potential sale also reflects wider investor interest in specialty chemicals businesses serving high-value end markets.
Source: Bloomberg
