Coatings World - June 2011

Ashland to buy ISP for $3.2 billion

Ashland Inc. has agreed to acquire International Specialty Products Inc. (ISP), a global specialty chemical manufacturer of functional ingredients and technologies. Under the terms of the stock purchase agreement, Ashland will pay approximately $3.2 billion for the business in an all-cash transaction. ISP, a global supplier of specialty chemicals and performance enhancing products for consumer and industrial markets, generated sales of approximately $1.6 billion for year ended March 31, 2011.

According to Ashland, ISP will bring high-value water soluble polymers and other advanced technologies into Ashland’s functional ingredients business, as well as complementary additives for Ashland’s food and beverage, energy, coatings, adhesives and water treatment markets. The acquisition is expected to significantly strengthen Ashland’s functional ingredients active patent portfolio and its team of research and development scientists.

“This defining transaction enables us
to significantly expand our market posi-
tions in higher margin, higher growth and
less cyclical global markets like personal
care and pharmaceuticals,” said Ashland
chairman and CEO James J. O’Brien. “It
broadens Ashland’s presence within at-
tractive growth areas like skin, hair and
oral care, which are large and fast-grow-
ing segments of the $5 billion-plus per-
sonal care specialty ingredients market. In
addition, we expect to more than double
the size of our highest-margin functional
ingredients business.”
ISP president and CEO Sunil Kumar
said, “We are very enthusiastic about the
opportunity to combine ISP with Ashland.
Both companies have a strong commit-
ment to serving customers with innovative
solutions and technologies. We appreciate
Ashland’s passion for this business and we
believe this combination offers tremen-
dous potential for our customers, key
business partners and employees.”

DuPont expands TiO2
capabilities, opens production
facilities at Mexico
DuPont announced a comprehensive tita-
nium dioxide expansion plan which will
add approximately 350,000 metric tons
of global capacity and strengthen the
company’s capability to meet the increas-

Dow Microbial Control opens application center in Australia

Dow Microbial Control recently opened a Customer Application Center (CAC) in Melbourne, Australia. Dow Microbial Control customers in Australia and New Zealand will now have access to state-of-the-art testing laboratories and innovative formulations, in line with local regulatory requirements.

As an ever developing industry, the global biocides and specialty chemicals industries are growing at an average of 10 to 15 percent, with Australia and New Zealand experiencing growth rates in these key areas of about eight percent year-on-year. In particular, shale gas is one new area of business that is expected to drive the market in the next five years as Australia prepares to harness this untapped natural gas resource.

"With new energy sources, an area that deals with complex microbial challenges, becoming increasingly important in Australia, we feel this is a timely opportunity to launch the Customer Application Centre in Melbourne," said Mark Henning, global general manager for Dow Microbial Control. "The facility will be a valuable resource to various industries that require innovative and expert knowledge to help solve new challenges to microbial problems. Customers can work together with experts to address microbial control needs and develop unique product formulations that will help us meet local regulations and environmental standards and conditions.”

Ribbon cutting ceremony with (left to right) Henry Chin, regional commercial manager for Southeast Asia, Australia, New Zealand, Rick Strittmatter, global R&D director, Dow Microbial Control, Mark Henning, global general manager, Dow Microbial Control, and John Williamson, sales director Thermosets South Asia.