Ashland to complete selling of Composites business in 2019

01 Jan '19

2 min read

Courtesy: Ashland Global

Ashland Global Holdings Inc., a premier global specialty chemicals company, is expecting to close the divestiture of its composites business prior to the end of the June 2019 quarter. The selling of Compsites business along with BDO manufacturing facility in Marl, Germany, to Ineos Enterprises in a transaction valued at approximately $1.1 billion.

Ashland has reaffirmed the business outlook for each operating segment as provided as part of the fourth quarter fiscal 2018 earnings release.

The updated financial outlook solely reflects the adoption of discontinued operations accounting for the Composites business and the BDO manufacturing facility in Marl, Germany due to the pending divestiture and associated debt reduction from net proceeds of the transaction, Ashland said in a press release.

The reduction to the adjusted diluted earnings per share (adjusted EPS) outlook is due to the elimination of the full-year adjusted EBITDA of Composites and the Marl BDO facility, partially offset by a portion of interest expense savings from the associated debt repayment and the elimination of the associated stranded costs throughout fiscal 2019.

Due to the expected timing of the divestiture closing, the full benefit of restructuring activities and interest expense savings from planned debt reduction will be realised during fiscal year 2020. The restructuring programme remains on track. As previously communicated, the elimination of all stranded costs - the magnitude and timing of which are unchanged - is expected to occur by the end of calendar year 2019. (RR)

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