Ashland Inc. Agrees to Buy Hercules in $3.3B Deal - Modern Distribution Management

Log In

Ashland Inc. Agrees to Buy Hercules in $3.3B Deal

Global chemical company Ashland Inc. has agreed to acquire Hercules Inc., Wilmington, DE, in a deal valued at $3.3 billion. The transaction, which would create a major, global specialty chemicals company, is expected to close by the end of 2008.
 
With sales in more than 100 countries, Ashland is a manufacturer of specialty chemicals, a distributor of chemicals and plastics, and a provider of automotive lubricants, car-care products and quick-lube services.
 
Hercules is a supplier in specialty additives and ingredients that modify the physical properties of water-based systems and is a supplier of specialty chemicals to the pulp and paper industry.
 
Upon the transaction's close, Ashland will have pro forma combined revenue for the 12 months ended March ...
Author
Date

Global chemical company Ashland Inc. has agreed to acquire Hercules Inc., Wilmington, DE, in a deal valued at $3.3 billion. The transaction, which would create a major, global specialty chemicals company, is expected to close by the end of 2008.
 
With sales in more than 100 countries, Ashland is a manufacturer of specialty chemicals, a distributor of chemicals and plastics, and a provider of automotive lubricants, car-care products and quick-lube services.
 
Hercules is a supplier in specialty additives and ingredients that modify the physical properties of water-based systems and is a supplier of specialty chemicals to the pulp and paper industry.
 
Upon the transaction’s close, Ashland will have pro forma combined revenue for the 12 months ended March 31, 2008, of more than $10 billion, including $3.5 billion generated outside North America.
 
 The acquisition of Hercules fulfills our objective to become a leading specialty chemicals company. It creates a defined core for Ashland composed of three specialty chemical businesses with strong market positions and promising global growth potential: specialty additives and ingredients, paper and water technologies, and specialty resins. In addition, we expect our financial profile to be enhanced significantly through reduced earnings volatility, improved profitability and stronger cash flow generation,” said Ashland CEO James J. O’Brien.
 
O’Brien said Ashland would combine the paper and water businesses of each company to create one global paper and water technologies business with annual revenue of $2 billion. The move bolsters Ashland’s position in water treatment markets.
 
The acquisition also gives Ashland expanded global opportunities for the specialty resins business in key building and construction markets, including infrastructure and wind energy.

Share this article

About the Author
Recommended Reading
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

Get the MDM Update Newsletter

Wholesale distribution news and trends delivered right to your inbox.

Sign-up for our free newsletter and get:

  • Up-to-date news in a quick-to-read format
  • Free access to webcasts, podcasts and live events
  • Exclusive whitepapers, research and reports
  • And more!

2

articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events

1

article
left

You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.

Register for full access

By providing your email, you agree to receive announcements from us and our partners for our newsletter, events, surveys, and partner resources per MDM Terms & Conditions. You can withdraw consent at any time.

Learn More about Custom Reports

Request a Market Prospector Demo

  • This field is for validation purposes and should be left unchanged.