INEOS Enterprises’ $1.1 Billion Acquisition of Ashland Composites Business and Butanediol Facility in Marl

Citi is acting as financial advisor to Ashland, and Squire Patton Boggs LLP is acting as legal advisor. Kirkland represented Citi on the deal

Ashland Global Holdings Inc. (NYSE: ASH) has signed a definitive agreement to sell its Composites business and the butanediol (BDO) manufacturing facility in Marl, Germany, to INEOS Enterprises in a transaction valued at approximately $1.1 billion. The transaction is expected to close prior to the end of the June 2019 quarter, contingent on certain customary regulatory approvals, standard closing conditions and completion of required employee information and consultation processes.

Ashland expects net proceeds from the sale to total approximately $1 billion and anticipates that proceeds primarily will be used for debt reduction.

Prior to reporting its financial results for the first quarter of fiscal 2019, Ashland plans to update its outlook for both the first quarter and for the full 2019 fiscal year to reflect the impact of moving these businesses to discontinued operations.

Ashland’s Composites unit is a global leader in unsaturated polyester resins, vinyl ester resins and gel coats, while the BDO facility in Germany and related merchant products included in the agreement are part of Ashland’s Intermediates and Solvents (I&S) segment. Ashland’s Composites and Marl BDO facility have combined sales of more than $1.1 billion per year and approximately 1,300 employees. Ashland will retain its BDO plant in Lima, Ohio, to ensure consistent supply for the company’s internal needs.

Squire Patton Boggs has advised Ashland Global Holdings Inc. with a team including Carolyn Buller (Picture), with corporate assistance from Jonathon Whittlesey, Laura Kacenjar, Andrew Renacci and Nikhita Godiwala. Other specialists on the team included: Meghan Hill and Natalie Bellwood on labor and human resources issues; Carl Draucker on benefits matters; Mitch Thompson on tax issues; Allen Kacenjar and Erik Lange on environmental matters; Huu Nguyen on intellectual property issues; Mike French on real estate matters; and Chris Gordon, Oliver Geiss and Brian Hartnett on antitrust issues.

Kirkland & Ellis LLP advised Citi with a team including Michael Brueck and Keri Schick Norton and associate Tracy Ke.

Involved fees earner: Michael Brueck – Kirkland & Ellis; Tracy Ke – Kirkland & Ellis; Keri Schick Norton – Kirkland & Ellis; Natalie Bellwood – Squire Patton Boggs; Carolyn Buller – Squire Patton Boggs; Carl Draucker – Squire Patton Boggs; Michael French – Squire Patton Boggs; Oliver Geiss – Squire Patton Boggs; Nikhita Godiwala – Squire Patton Boggs; Christopher Gordon – Squire Patton Boggs; Brian Hartnett – Squire Patton Boggs; Meghan Hill – Squire Patton Boggs; Laura Kacenjar – Squire Patton Boggs; Allen Kacenjar Jr. – Squire Patton Boggs; Erik Lange – Squire Patton Boggs; Huu Nguyen – Squire Patton Boggs; Andrew Renacci – Squire Patton Boggs; Mitch Thompson – Squire Patton Boggs; Jonathon Whittlesey – Squire Patton Boggs;

Law Firms: Kirkland & Ellis; Squire Patton Boggs;

Clients: Ashland Global Holdings Inc.; Citigroup Inc.;

Author: Ambrogio Visconti