To streamline its portfolio and focus on specialty ingredients, Ashland Global Holdings, Inc. announced an agreement to sell its maleic anhydride business and manufacturing facility in Neal, West Virginia, to AOC Materials LLC, for $100 million.
Maleic anhydride is manufactured industrially on a large scale for applications in coatings and polymers. The company reports the maleic anhydride business was previously excluded from the sale of its composites business and the butanediol manufacturing facility in Marl, Germany, to INEOS Enterprises. The transaction with AOC is expected to close prior to the end of calendar year 2020, contingent upon approvals and standard closing conditions.
“Today’s announcement furthers Ashland’s strategic focus to streamline our portfolio and to focus on specialty ingredients and improved margins,” said Guillermo Novo, chairman and chief executive officer, Ashland. “The maleic business and its respective employees have made important contributions to Ashland, and AOC will take a strategic view of the business to drive growth and continue their success.”
“We are delighted to have this business as a part of our company and welcome the employees who have made it successful to the AOC family,” added Joe Salley, chief executive officer, AOC. “We are excited about the growth prospects, not only as a source for our internal consumption but also for the merchant market as well.”