Ashland Announces Strategic Review of Its Performance Adhesives Business Unit

On May 25, 2021, Ashland announced a strategic review of its Performance Adhesives business unit and plans to evaluate all options related to the business unit, including a potential sale
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The decision is consistent with Ashland's strategy to expand its comprehensive additive ingredients portfolio, which is focused on its leadership in its core pharmaceutical, personal care and coatings businesses
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"Ashland's Performance Adhesives business unit has a strong and dedicated business team with strong financial performance who excel in solutions in key niche markets," said Ashland Chairman and CEO Guillermo Novo
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"The company has valuable products that bring differentiated performance to customers in different applications and markets
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The team has recently launched innovative technologies that will bring exciting benefits to this unique business Growth potential
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Novo said he hoped the combination of strong funding capacity, low interest rates and improved global macroeconomic conditions would create a favorable backdrop for a potential sale of the business unit
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Ashland plans to increase its capital allocation to its core additive portfolio, which includes life sciences, personal care, and household and specialty additives
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Priority will be given to expanding its high-value pharmaceutical and personal care businesses to enhance shareholder value through improved margins and focused development capital deployment, including potential M&A transactions
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Ashland's recent acquisition of the Schülke & Mayr personal care business underscores the company's strategy to grow in its core end markets
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Integration is progressing as planned
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As Ashland continues to strengthen its commitment to environmental, social and governance (ESG), the company is increasing its development of differentiated ingredient innovations and unique custom specialty solutions to enable responsible growth commensurate with consumer market trends
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Solving complex challenges for customers in a sustainable manner will help further improve efficacy, improve usability, increase attractiveness, ensure integrity and increase the profitability of their products and applications
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Ashland expects to complete the strategic review by the end of calendar 2021
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Currently, the company has hired Citi to assist with a strategic review
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