Ashland to acquire International Specialty Products for $3.2 billion

USA-based Ashland (NYSE: ASH) has agreed to acquire privately-held International Specialty Products (ISP), a global specialty chemical manufacturer of innovative functional ingredients and technologies. Under the terms of the stock purchase deal, Ashland will pay around $3.2 billion for the business in an all-cash transaction.

At closing, ISP's advanced product portfolio will expand Ashland's position in high-growth markets such as personal care, pharmaceuticals and energy. For the 12 months ended March 31, 2011, ISP generated sales of about $1.6 billion and earnings before interest, taxes, depreciation and amortization (EBITDA) of some $360 million. The transaction is expected to be immediately accretive to Ashland's earnings per share.

The acquisition is expected to significantly strengthen Ashland's functional ingredients active patent portfolio and its team of R&D scientists. The result will be a stronger, global functional ingredients business with proven technological and application capabilities to solve customers' unique formulation challenges, Ashland states.