Ashland completes sale of nutraceuticals business
Rhea-AI Summary
Ashland Inc. (NYSE: ASH) has completed the sale of its nutraceuticals business to an affiliate of Turnspire Capital Partners on August 30, 2024. The transaction includes custom formulation and contract manufacturing capabilities for the nutrition market from production facilities in New Jersey, Utah, and Tamaulipas, Mexico. Financial terms were not disclosed.
Guillermo Novo, Ashland's CEO, acknowledged the strong portfolio and capabilities of the nutraceuticals business, thanking employees for their dedication. Ilya Koffman, managing partner at Turnspire, expressed enthusiasm for working with the newly named Pharmachem Innovations team to build on the business's legacy in the nutraceuticals space.
Citi served as financial advisor to Ashland, while Cravath, Swaine & Moore LLP acted as legal advisor for the transaction.
Positive
- Divestiture of non-core business potentially streamlining operations
- Possible influx of cash from the sale (though terms not disclosed)
Negative
- Loss of revenue stream from nutraceuticals business
- Reduction in diversification of product portfolio
News Market Reaction
On the day this news was published, ASH declined 1.32%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
WILMINGTON, Del., Sept. 03, 2024 (GLOBE NEWSWIRE) -- Ashland Inc. (NYSE: ASH) today announced it has completed the sale of its nutraceuticals business to an affiliate of Turnspire Capital Partners LLC (“Turnspire”) effective August 30, 2024. The sale includes custom formulation and contract manufacturing capabilities for the nutrition market from the production facilities in New Jersey and Utah in the United States, and Tamaulipas, Mexico. Financial terms of the transaction were not disclosed.
“The nutraceuticals business has a strong portfolio of proprietary ingredients, formulation and manufacturing capabilities,” said Guillermo Novo, chair and chief executive officer, Ashland. “I want to thank the employees for their dedication and commitment to Ashland and to our customers over the years. On behalf of the Ashland team, I wish the new Pharmachem Innovations continued success as part of the Turnspire family of companies.”
“We greatly appreciate the Ashland team’s consistent constructive approach to achieve this win-win transaction,” said Ilya Koffman, managing partner, Turnspire. “We look forward to working with the talented management and employees of Pharmachem Innovations to build on the business’s rich legacy as a leader in the growing and compelling nutraceuticals space.
Citi acted as financial advisor to Ashland. Cravath, Swaine & Moore LLP acted as legal advisor to Ashland.
For more information, visit pharmachem.com
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 3,800 passionate, tenacious solvers – from renowned scientists and research chemists to talented engineers and plant operators – 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.
™ Trademark, Ashland or its subsidiaries, registered in various countries.
FOR FURTHER INFORMATION:
| Investor Relations: | Media Relations: |
| William Whitaker | Carolmarie C. Brown |
| +1 (614) 790-2095 | +1 (302) 995-3158 |
| wcwhitaker@ashland.com | ccbrown@ashland.com |
Attachment
FAQ
What business did Ashland (ASH) sell on August 30, 2024?
What assets were included in Ashland's (ASH) nutraceuticals business sale?
Who was the financial advisor to Ashland (ASH) for the nutraceuticals business sale?
What is the new name of Ashland's former nutraceuticals business?
