Ashland completes sale of nutraceuticals business
Ashland Inc. (NYSE: ASH) has completed the sale of its nutraceuticals business to an affiliate of Turnspire Capital Partners on August 30, 2024. The transaction includes custom formulation and contract manufacturing capabilities for the nutrition market from production facilities in New Jersey, Utah, and Tamaulipas, Mexico. Financial terms were not disclosed.
Guillermo Novo, Ashland's CEO, acknowledged the strong portfolio and capabilities of the nutraceuticals business, thanking employees for their dedication. Ilya Koffman, managing partner at Turnspire, expressed enthusiasm for working with the newly named Pharmachem Innovations team to build on the business's legacy in the nutraceuticals space.
Citi served as financial advisor to Ashland, while Cravath, Swaine & Moore LLP acted as legal advisor for the transaction.
Ashland Inc. (NYSE: ASH) ha completato la vendita della sua attività di nutraceutici a un'affiliata di Turnspire Capital Partners il 30 agosto 2024. La transazione include capacità di formulazione personalizzata e produzione su contratto per il mercato della nutrizione da strutture produttive nel New Jersey, Utah e Tamaulipas, Messico. I termini finanziari non sono stati divulgati.
Guillermo Novo, CEO di Ashland, ha riconosciuto il forte portafoglio e le capacità dell'attività di nutraceutici, ringraziando i dipendenti per la loro dedizione. Ilya Koffman, partner di gestione di Turnspire, ha espresso entusiasmo per la collaborazione con il nuovo team di Pharmachem Innovations per costruire sul patrimonio dell'attività nel settore nutraceutico.
Citi ha svolto il ruolo di advisor finanziario per Ashland, mentre Cravath, Swaine & Moore LLP ha agito come advisor legale per la transazione.
Ashland Inc. (NYSE: ASH) ha completado la venta de su negocio de nutracéuticos a una afiliada de Turnspire Capital Partners el 30 de agosto de 2024. La transacción incluye capacidades de formulación personalizada y fabricación por contrato para el mercado de nutrición desde instalaciones de producción en Nueva Jersey, Utah y Tamaulipas, México. Los términos financieros no se divulgaron.
Guillermo Novo, CEO de Ashland, reconoció el sólido portafolio y las capacidades del negocio de nutracéuticos, agradeciendo a los empleados por su dedicación. Ilya Koffman, socio gerente de Turnspire, expresó entusiasmo por trabajar con el nuevo equipo de Pharmachem Innovations para construir sobre el legado del negocio en el espacio de nutracéuticos.
Citi actuó como asesor financiero para Ashland, mientras que Cravath, Swaine & Moore LLP se encargó como asesor legal para la transacción.
Ashland Inc. (NYSE: ASH)는 2024년 8월 30일 자신의 건강기능식품 사업을 매각했습니다. 이 거래는 뉴저지, 유타, 멕시코 타마울리파스의 생산 시설에서 영양 시장을 위한 맞춤형 조제 및 계약 제조 능력을 포함합니다. 금융 조건은 공개되지 않았습니다.
Guillermo Novo Ashland의 CEO는 건강기능식품 사업의 강력한 포트폴리오와 능력을 인정하며 직원들의 헌신에 감사를 표했습니다. Turnspire의 관리 파트너인 Ilya Koffman은 새로 명명된 Pharmachem Innovations 팀과 함께 건강기능식품 분야에서 비즈니스의 유산을 발전시키기 위해 협력하게 되어 기쁘다고 전했습니다.
Citi는 Ashland의 재무 자문 역할을 수행했으며, Cravath, Swaine & Moore LLP는 거래에 대한 법률 자문 역할을 했습니다.
Ashland Inc. (NYSE: ASH) a achevé la vente de son activité de nutraceutiques à une filiale de Turnspire Capital Partners le 30 août 2024. La transaction comprend des capacités de formulation personnalisée et de fabrication sous contrat pour le marché de la nutrition depuis des installations de production dans le New Jersey, l'Utah et Tamaulipas, au Mexique. Les conditions financières n'ont pas été divulguées.
Guillermo Novo, PDG d'Ashland, a reconnu le solide portefeuille et les compétences de l'activité nutraceutique, remerciant les employés pour leur dévouement. Ilya Koffman, partenaire directeur chez Turnspire, a exprimé son enthousiasme à travailler avec la nouvelle équipe de Pharmachem Innovations pour capitaliser sur l'héritage de l'entreprise dans le domaine des nutraceutiques.
Citi a servi de conseiller financier pour Ashland, tandis que Cravath, Swaine & Moore LLP a agi en tant que conseiller juridique pour la transaction.
Ashland Inc. (NYSE: ASH) hat am 30. August 2024 den Verkauf seines Nutraceutical-Geschäfts abgeschlossen, und zwar an eine Tochtergesellschaft von Turnspire Capital Partners. Die Transaktion umfasst maßgeschneiderte Formulierung und Vertragsherstellungsfähigkeiten für den Ernährungsmarkt von Produktionsstandorten in New Jersey, Utah und Tamaulipas, Mexiko. Finanzielle Einzelheiten wurden nicht bekannt gegeben.
Guillermo Novo, CEO von Ashland, erkannte das starke Portfolio und die Fähigkeiten des Nutraceutical-Geschäfts an und dankte den Mitarbeitern für ihr Engagement. Ilya Koffman, Managing Partner bei Turnspire, äußerte seine Vorfreude auf die Zusammenarbeit mit dem neu benannten Pharmachem Innovations-Team, um das Erbe des Geschäfts im Bereich Nutraceuticals weiter auszubauen.
Citi fungierte als Finanzberater für Ashland, während Cravath, Swaine & Moore LLP als rechtlicher Berater für die Transaktion tätig war.
- Divestiture of non-core business potentially streamlining operations
- Possible influx of cash from the sale (though terms not disclosed)
- Loss of revenue stream from nutraceuticals business
- Reduction in diversification of product portfolio
Insights
The sale of Ashland's nutraceuticals business marks a significant strategic move, potentially streamlining the company's portfolio. While financial terms weren't disclosed, this divestiture could impact Ashland's revenue stream and profitability. The transaction's effects on Ashland's balance sheet and future earnings projections need careful scrutiny. Investors should watch for any guidance updates or changes in Ashland's financial outlook following this sale. The move may allow Ashland to focus on core operations, potentially improving overall operational efficiency and margins. However, the loss of the nutraceuticals segment might also reduce diversification, increasing exposure to fluctuations in remaining business areas.
The nutraceuticals market has been experiencing robust growth, driven by increasing health consciousness and an aging population. Ashland's decision to divest this business might seem counterintuitive given the sector's potential. However, it could indicate that the company sees better growth opportunities elsewhere or that the unit wasn't meeting internal performance targets. For Turnspire, this acquisition presents an opportunity to capitalize on the expanding nutraceuticals market. The deal includes valuable assets like custom formulation capabilities and manufacturing facilities across three locations, which could provide a strong foundation for growth under new ownership. Investors should monitor how this transaction affects both companies' market positions and competitive dynamics in the nutraceuticals space.
This divestiture aligns with a broader trend of companies refocusing on core competencies. For Ashland, shedding the nutraceuticals business could free up resources and management attention for its primary operations. The move might also improve the company's overall financial metrics if the sold unit had lower margins or growth rates compared to other segments. However, the long-term implications depend on how Ashland redeploys the proceeds from this sale. Investors should look for signals about potential reinvestment in R&D, debt reduction, or shareholder returns. For Turnspire, a private equity firm, this acquisition fits the typical strategy of acquiring specialized businesses with growth potential. Their success will hinge on their ability to drive operational improvements and capitalize on market opportunities in the nutraceuticals sector.
WILMINGTON, Del., Sept. 03, 2024 (GLOBE NEWSWIRE) -- Ashland Inc. (NYSE: ASH) today announced it has completed the sale of its nutraceuticals business to an affiliate of Turnspire Capital Partners LLC (“Turnspire”) effective August 30, 2024. The sale includes custom formulation and contract manufacturing capabilities for the nutrition market from the production facilities in New Jersey and Utah in the United States, and Tamaulipas, Mexico. Financial terms of the transaction were not disclosed.
“The nutraceuticals business has a strong portfolio of proprietary ingredients, formulation and manufacturing capabilities,” said Guillermo Novo, chair and chief executive officer, Ashland. “I want to thank the employees for their dedication and commitment to Ashland and to our customers over the years. On behalf of the Ashland team, I wish the new Pharmachem Innovations continued success as part of the Turnspire family of companies.”
“We greatly appreciate the Ashland team’s consistent constructive approach to achieve this win-win transaction,” said Ilya Koffman, managing partner, Turnspire. “We look forward to working with the talented management and employees of Pharmachem Innovations to build on the business’s rich legacy as a leader in the growing and compelling nutraceuticals space.
Citi acted as financial advisor to Ashland. Cravath, Swaine & Moore LLP acted as legal advisor to Ashland.
For more information, visit pharmachem.com
About Ashland
Ashland Inc. (NYSE: ASH) is a global additives and specialty ingredients company with a conscious and proactive mindset for environmental, social and governance (ESG). The company serves customers in a wide range of consumer and industrial markets, including architectural coatings, construction, energy, food and beverage, personal care and pharmaceutical. Approximately 3,800 passionate, tenacious solvers – from renowned scientists and research chemists to talented engineers and plant operators – thrive on developing practical, innovative and elegant solutions to complex problems for customers in more than 100 countries. Visit ashland.com and ashland.com/ESG to learn more.
™ Trademark, Ashland or its subsidiaries, registered in various countries.
FOR FURTHER INFORMATION:
| Investor Relations: | Media Relations: |
| William Whitaker | Carolmarie C. Brown |
| +1 (614) 790-2095 | +1 (302) 995-3158 |
| wcwhitaker@ashland.com | ccbrown@ashland.com |
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