Sector News

Ashland to sell industrial biocides assets to Troy

May 29, 2015
Chemical Value Chain
Ashland says that it has signed a definitive agreement to sell the industrial biocides assets within the company’s specialty ingredients business segment, to Troy Corp. (Florham Park, NJ), a global leader in microbial control products and performance additives. Financial terms of the agreement have not been disclosed.
 
Industrial biocides—which help control and prevent the growth of bacteria, mold and other microorganisms in a wide range of coatings, construction materials and energy products—accounted for about 2% of specialty ingredients’ sales for the 12 months ended 31 March 2015, Ashland says. The company did not disclose the sales figure for the business segment during that 12-month period. In the company’s fiscal year ended 30 September 2014, the specialty ingredients business segment generated sales of about $2.5 billion.
 
Specialty Ingredients’ lineup of preservatives products, which is focused on consumer markets, is excluded from the agreement with Troy and Ashland is committed to retaining and growing that strategic business, the company says.
 
Industrial biocides is a non-core product line and the divestment is expected to close within 60 days, subject to standard closing conditions and completion of required employee information and consultation processes, Ashland says.
 
“This divestiture reflects our continued focus on driving growth within the higher-margin core businesses where we offer greater value to our customers,” says Luis Fernandez-Moreno, Ashland senior v.p. and president of Ashland’s chemicals group. “As a smaller player within the industrial biocides market, Ashland has lacked the critical mass needed to be successful. Troy is better positioned to capitalize on growth opportunities within this segment and we are committed to working with them to ensure a seamless transition for our industrial biocides employees and customers,” Fernandez-Moreno says.
 
Troy, which was founded in 1950, develops and manufactures specialty materials that enhance the properties and performance of its customers’ products and processes, and helps manufacturers meet global requirements for compliance and sustainability, Ashland says. Troy has sales offices throughout the United States, Canada, Europe, Asia, and Latin America. 
 
“With the addition of Ashland’s industrial biocides business, Troy’s portfolio of preservatives will be enhanced, delivering even more value, performance, and sustainability to the marketplaces served,” says W. Brian Smith, v.p. at Troy. 
 
Ashland has recently divested several non-core assets. Earlier this year, Ashland agreed to sell its Valvoline car-care assets, including manufacturing and distribution facilities at Hernando, MI, to Niteo Products, a newly formed affiliate of Highlander Partners (Dallas), a private investment firm.  Late last year, Lion Copolymer (Geismar, LA) acquired Ashland’s styrene-butadiene rubber elastomers business, for an undisclosed amount. In 2014, Ashland and Clariant sold their foundry chemicals joint venture, ASK Chemicals (Hilden, Germany), to investment funds affiliated with Rhône, a London- and New York–based private equity investment firm. In August 2014, Ashland completed the divestment of its water technologies business, a supplier of water treatment and pulp and paper process chemicals, to private equity firm Clayton, Dubilier & Rice (CD&R; New York) for $1.8 billion. With these divestments, Ashland aims tp focus on the company’s core specialty chemicals business.
 
By Deepti Ramesh
 

comments closed

Related News

December 3, 2022

Corteva to acquire Stoller Group for $1.2 billion

Chemical Value Chain

Corteva (Indianapolis, Indiana) says it has signed a definitive agreement to acquire Stoller Group (Houston, Texas), a producer of biostimulants and plant nutrition products, for $1.2 billion. Stoller is one of the largest independent biologicals companies globally, with operations in more than 60 countries and more than $400 million in annual sales.

December 3, 2022

OMV introduces new corporate structure to drive sustainable growth and innovation

Chemical Value Chain

OMV has announced its new corporate structure today, designed to fully enable the delivery of Strategy 2030. The new organization will be built on five distinct areas. In addition to the CEO and CFO areas, three business segments will be established: Chemicals & Materials, Fuels & Feedstock, and Energy.

December 3, 2022

What does the current downturn in industrial manufacturing mean for executives searching for a senior role in the chemicals industry?

Chemical Value Chain

The European petchem sector is readying for some tough quarters. It’s a different picture in the US. So is this the best time ever to find a new role in the chemical industry? If you are in Europe, you would expect me to say probably not. But actually, it depends. So let me give you four answers to this question.