US Ashland completes Hercules acquisition
14 November 2008 01:48 [Source: ICIS news]
HOUSTON (ICIS news)--?xml:namespace>US specialty chemicals company Ashland said on Thursday it has completed its $2.60bn (€2.06bn) acquisition of water and paper chemicals producer Hercules.
Each share of Hercules common stock outstanding was exchanged for $18.60 in cash and 0.093 of a share of Ashland common stock, Ashland said.
With the acquisition, Ashland said it will run three major businesses - paper and water technologies; specialty resins, and; specialty additives and functional ingredients. The businesses will generate 75% of Ashland’s total earnings before interest, taxes, depreciation and amortisation (EBITDA), the company said.
This transaction better positions Ashland to deliver more stable and predictable earnings, generate stronger cash flows and gain access to higher growth markets worldwide, most especially those in emerging economies," said Ashland chairman and chief executive James O'Brien.
Ashland said it will save about $120m/year by eliminating redundancies and capturing operational efficiencies by the end of fiscal year 2010.
The corporate headquarters for Ashland will remain in Covington, Kentucky, the company said.
The Hercules administrative facility in Wilmington, Delaware, will become the operations centre for the Ashland Aqualon Functional Ingredients and the Ashland Hercules Water Technologies commercial units.
($1 = €0.80)
For more on Ashland and Hercules visit ICIS company intelligenceBy: Brian Ford+1 713 525 2653
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