Ashland Inc. has announced that its subsidiary, Hercules Incorporated, has signed a definitive agreement to sell its pentaerythritol (PE) business to Perstorp Polyols Inc., a subsidiary of Perstorp Holding AB. The purchase price was not disclosed.
According to the company, PE is a building block for the manufacture of alkyd resins, varnishes, PVC stabilizers, olefin antioxidants and other products. The transaction includes transfer of the PE business, related technology and a minor amount of equipment. This transaction is reportedly consistent with Ashland's strategy to focus assets and energies in core specialty chemicals product areas.
The transaction is expected to close by early March 2011, subject to fulfillment of certain conditions. The parties will work together to ensure a seamless transition with no disruption in customer service or supply.
Following transaction close, Ashland will continue to manufacture PE for Perstorp under a transitional supply arrangement until customer and other transitions are complete. In additoin, Ashland will continue to produce synthetic lubricants at the site, and through a supply agreement, Ashland will begin purchasing PE from Perstorp as a raw material for its continuing synthetic lubricants production.