Ashland signs definitive agreement to sell Avoca business to Mane
Ashland Inc. (NYSE: ASH) has announced a definitive agreement to sell its Avoca business to Mane. The transaction is expected to close in Q1 2025, subject to customary closing conditions. Avoca, which represents the final entity from Ashland's previous Pharmachem acquisition, operates two production facilities in North Carolina and Wisconsin, specializing in Sclareolide (a fragrance fixative) and contract manufacturing capabilities. Squire Patton Boggs is serving as Ashland's legal advisor for this transaction.
Ashland Inc. (NYSE: ASH) ha annunciato un accordo definitivo per vendere la sua attività Avoca a Mane. La transazione dovrebbe concludersi nel primo trimestre del 2025, soggetta alle consuete condizioni di chiusura. Avoca, che rappresenta l'ultimo ente acquisito da Ashland nella precedente operazione Pharmachem, gestisce due impianti di produzione in Carolina del Nord e Wisconsin, specializzandosi in Sclareolide (un fissatore per fragranze) e nelle capacità di produzione su contratto. Squire Patton Boggs funge da consulente legale di Ashland per questa transazione.
Ashland Inc. (NYSE: ASH) ha anunciado un acuerdo definitivo para vender su negocio Avoca a Mane. Se espera que la transacción se cierre en el primer trimestre de 2025, sujeta a las condiciones habituales de cierre. Avoca, que representa la última entidad de la adquisición anterior de Pharmachem por parte de Ashland, opera dos instalaciones de producción en Carolina del Norte y Wisconsin, especializándose en Sclareolide (un fijador de fragancias) y capacidades de fabricación por contrato. Squire Patton Boggs actúa como asesor legal de Ashland para esta transacción.
Ashland Inc. (NYSE: ASH)는 Avoca 사업을 Mane에 판매하기로 한 확정 계약을 발표했습니다. 이 거래는 관례적인 종결 조건에 따라 2025년 1분기에 마무리될 것으로 예상됩니다. Avoca는 Ashland가 이전에 Pharmachem을 인수하면서 확보한 마지막 실체로, 노스캐롤라이나주와 위스콘신주에 두 개의 생산 시설을 운영하며, Sclareolide(향수 고정제)와 계약 제조 능력에 특화되어 있습니다. Squire Patton Boggs는 이 거래를 위한 Ashland의 법률 고문 역할을 하고 있습니다.
Ashland Inc. (NYSE: ASH) a annoncé un accord définitif pour vendre son activité Avoca à Mane. La transaction devrait être finalisée au premier trimestre 2025, sous réserve des conditions habituelles de clôture. Avoca, qui représente la dernière entité de l'acquisition précédente de Pharmachem par Ashland, exploite deux installations de production en Caroline du Nord et dans le Wisconsin, se spécialisant dans le Sclareolide (un fixatif de parfum) et les capacités de fabrication sous contrat. Squire Patton Boggs sert de conseiller juridique pour Ashland dans le cadre de cette transaction.
Ashland Inc. (NYSE: ASH) hat eine endgültige Vereinbarung angekündigt, um ihr Avoca-Geschäft an Mane zu verkaufen. Die Transaktion wird voraussichtlich im ersten Quartal 2025 abgeschlossen, vorbehaltlich der üblichen Abschlussbedingungen. Avoca, das die letzte Einheit aus der vorherigen Pharmachem-Akquisition von Ashland darstellt, betreibt zwei Produktionsstätten in North Carolina und Wisconsin und hat sich auf Sclareolide (ein Duftfixativ) sowie Vertragsfertigung spezialisiert. Squire Patton Boggs fungiert als rechtlicher Berater von Ashland für diese Transaktion.
- Strategic divestment of non-core business unit
- Completion of Pharmachem portfolio optimization
- None.
Insights
The sale of Ashland's Avoca business to Mane represents a strategic divestiture that completes Ashland's exit from the Pharmachem portfolio. The deal focuses on Avoca's Sclareolide production and contract manufacturing operations in North Carolina and Wisconsin. While financial terms weren't disclosed, this transaction aligns with Ashland's portfolio optimization strategy, potentially streamlining operations and improving capital allocation efficiency.
The timing of the deal, expected to close in Q1 2025, suggests a well-structured transition that should minimize operational disruption. Mane, as a major player in the flavors and fragrances industry, gains valuable manufacturing capabilities and a specialized product line that complements their existing portfolio. The acquisition of Avoca's Sclareolide business, particularly its fragrance fixative capabilities, strengthens Mane's position in the specialty ingredients market.
For investors, this divestiture signals Ashland's continued focus on core business segments and operational efficiency. The sale likely removes non-core assets from the balance sheet, potentially improving overall company margins and return on invested capital. However, the undisclosed transaction value makes it challenging to quantify the immediate financial impact on Ashland's
The divestiture of Avoca represents a significant shift in Ashland's specialty chemicals portfolio. Sclareolide, derived from clary sage, is a high-value fragrance fixative used to enhance the longevity of perfumes. The transfer of these specialized production facilities to Mane, a recognized leader in fragrances, suggests a strategic realignment of these assets to an owner better positioned to maximize their value.
The deal's structure highlights the specialty chemicals sector's ongoing consolidation, where companies are increasingly focusing on core competencies. For Ashland, this move likely reduces exposure to the more volatile fragrance ingredients market while potentially freeing up resources for investment in its core specialty materials business.
From an industry perspective, this transaction reflects the broader trend of large specialty chemical companies streamlining their portfolios to focus on higher-margin, more differentiated product lines. The timing aligns with market expectations of increased M&A activity in the specialty chemicals sector as companies optimize their asset portfolios in response to changing market dynamics.
Wilmington, Del., Dec. 23, 2024 (GLOBE NEWSWIRE) -- Ashland Inc. (NYSE: ASH) announced today that it has signed a definitive agreement to sell its Avoca business to Mane. The transaction is expected to close in the calendar first quarter 2025, subject to the satisfaction of customary closing conditions.
Ashland's Avoca business supplies Sclareolide, a fragrance fixative, and a range of contract manufacturing capabilities from two production facilities in North Carolina and Wisconsin. The Avoca business line represents the last entity from Ashland’s previous acquisition of Pharmachem.
“The Avoca business is a strong player in the fragrance fixative space with a dedicated team and attractive manufacturing capabilities to meet customer needs,” said Guillermo Novo, chair and chief executive officer, Ashland. “I want to thank the Avoca employees for their dedication and commitment to Ashland and to our customers.”
Squire Patton Boggs is acting as legal advisor to Ashland.
Update Forward-Looking Statements
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. Ashland has identified some of these forward-looking statements with words such as “anticipates,” “believes,” “expects,” “estimates,” “is likely,” “predicts,” “projects,” “forecasts,” “objectives,” “may,” “will,” should,” “plans” and “intends” and the negative of these words or other comparable terminology. In addition, Ashland may from time to time make forward-looking statements in its annual report to shareholders, quarterly reports and other filings with the Securities and Exchange Commission (SEC), news releases and other written and oral communications. These forward-looking statements are based on Ashland’s expectations and assumptions, as of the date such statements are made, regarding Ashland’s future operating performance, financial condition, operating cash flow and liquidity, as well as the economy and other future events or circumstances. These statements include, but may not be limited to, statements about the sale of the Avoca business, including the expected timing for closing of the sale. Various risks and uncertainties may cause actual results to differ materially from those stated, projected or implied by any forward-looking statements, including any delay in the satisfaction of customary closing conditions for the sale of the Avoca business. Factors that will influence the impact on our business and operations include, without limitation, risks and uncertainties affecting Ashland that are described in its most recent Form 10-K (including Item 1A Risk Factors) filed with the SEC, which is available on Ashland’s website at http://investor.ashland.com or on the SEC’s website at http://www.sec.gov. Ashland believes its expectations and assumptions are reasonable, but there can be no assurance that the expectations reflected herein will be achieved. Unless legally required, Ashland undertakes no obligation to update any forward-looking statements made in this news release whether because of new information, future events or otherwise. Information on Ashland’s website is not incorporated into or a part of this news release.
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 3,200 passionate, tenacious solvers 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.
About Mane
Founded in 1871 by Victor Mane, MANE is one of the leading producers and suppliers of fragrances and flavours globally. Since inception, the company has been owned and managed by five successive generations of the Mane family.
MANE is a global group, operating 29 production facilities worldwide and more than 79 sites in more than 40 countries and employing over 8,000 collaborators. The first French company and the fifth largest fragrances and flavours producer in the world and are recognised as the fastest growing major company within the industry.
™ Trademark, Ashland or its subsidiaries, registered in various countries.
FOR FURTHER INFORMATION:
| Investor Relations Ashland: | Media Relations Ashland: |
| William C. Whitaker | Carolmarie C. Brown |
| +1 (614) 790-2095 | +1 (302) 995-3158 |
| wcwhitaker@ashland.com | ccbrown@ashland.com |
| Mane Contacts: | |
| Eliane Coloretti | Bertrand Boulin |
| + 33 4 93 09 70 00 | + 33 4 93 09 70 00 |
| Eliane.COLORETTI@MANE.com | Bertrand.BOULIN@mane.com |
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