Ashland To Sell Elastomers Business To Lion Copolymer Holdings, LLC

Ashland Inc. (NYSE: ASH) and Lion Copolymer Holdings,LLC, today announced they have reached a definitive agreement underwhich Lion Copolymer will purchase Ashland's elastomers business basedin Port Neches, Texas. The transaction is expected to close by December31, 2014, contingent on certain customary regulatory approvals andstandard closing conditions. Financial terms were not disclosed. The elastomers business accounted for approximately 17 percent ofAshland Performance Materials' $1.6 billion in sales for the trailing 12months ended June 30, 2014. This business, which primarily serves theNorth American replacement tire market, was acquired by Ashland as partof the International Specialty Products transaction in August 2011.Ashland operates a 250-person manufacturing facility in Port Neches thatserves elastomers customers. "This decision fits Ashland's well-established strategy of divestingnon-core assets and reinvesting in higher-margin, specialty chemicalbusinesses where we see attractive growth opportunities," said James J.O'Brien, Ashland chairman and chief executive officer. "We are pleasedwith the value we received for the business and believe this transactionrepresents a good strategic fit for Lion." "With the acquisition of the Ashland elastomers business, we are pleasedonce again to be in this segment of the synthetic rubber business," saidJesse Zeringue, executive vice-president of Lion Copolymer Holdings. "Wethink the size of the facility in Port Neches, access to feedstock andexcellent storage capacity, combined with specialty products such as hotstyrene-butadiene rubber polymers and high styrene polymers, provide uswith an excellent growth opportunity. We were also impressed by thequality of the operations and the plant, which has benefited fromsignificant investment over the years."