Ashland Inc. ASH and Lion Copolymer Holdings,
LLC, today announced they have reached a definitive agreement under
which Lion Copolymer will purchase Ashland's elastomers business based
in Port Neches, Texas. The transaction is expected to close by December
31, 2014, contingent on certain customary regulatory approvals and
standard closing conditions. Financial terms were not disclosed.
The elastomers business accounted for approximately 17 percent of
Ashland Performance Materials' $1.6 billion in sales for the trailing 12
months ended June 30, 2014. This business, which primarily serves the
North American replacement tire market, was acquired by Ashland as part
of the International Specialty Products transaction in August 2011.
Ashland operates a 250-person manufacturing facility in Port Neches that
serves elastomers customers.
"This decision fits Ashland's well-established strategy of divesting
non-core assets and reinvesting in higher-margin, specialty chemical
businesses where we see attractive growth opportunities," said James J.
O'Brien, Ashland chairman and chief executive officer. "We are pleased
with the value we received for the business and believe this transaction
represents a good strategic fit for Lion."
"With the acquisition of the Ashland elastomers business, we are pleased
once again to be in this segment of the synthetic rubber business," said
Jesse Zeringue, executive vice-president of Lion Copolymer Holdings. "We
think the size of the facility in Port Neches, access to feedstock and
excellent storage capacity, combined with specialty products such as hot
styrene-butadiene rubber polymers and high styrene polymers, provide us
with an excellent growth opportunity. We were also impressed by the
quality of the operations and the plant, which has benefited from
significant investment over the years."
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