Ashland Announces Strategic Review of Performance Adhesives Business Unit

Ashland Global Holdings Inc. (NYSE: ASH) announced a strategic review of its performance adhesives business unit. Ashland aims to evaluate all options related to the business unit, including a possible sale. The decision is consistent with the company's strategy to grow its integrated additives portfolio focused on leadership positions in core pharmaceutical, personal care and coatings operations. Guillermo Novo, Chairman and CEO of Ashland, said: "Ashland's performance adhesives business unit has demonstrated exceptional financial performance with a strong and dedicated team that has achieved superior results in solutions across important niche markets. The operation possesses valuable products with differentiated performance for customers across diverse applications and markets. The team has recently introduced innovations that provide exciting growth potential for this unique business."

Novo said he expects the combination of strong financial availability, low interest rates and improving global macroeconomic conditions to create a supportive environment for a potential sale of the business unit.

The company plans to increase capital allocation toward its core additives portfolio, which consists of life sciences, personal care and home and specialty additives. Priority will be given to expanding high-value pharmaceutical and personal care operations and increasing shareholder value through focused growth capital allocation, including improved margins and potential bolt-on acquisitions. Ashland recently acquired the Schülke & Mayr personal care business, underscoring the company's growth strategy in its core end markets. Integration is proceeding as planned. While Ashland continues to intensify its commitment to environmental, social and governance (ESG), the company is increasing its development of differentiated content innovations and unique specialty solutions aligned with consumer market trends for responsible growth. Sustainably addressing complex challenges for customers will help further increase efficiency, improve usability, enhance appeal, ensure integrity and increase the profitability of its products and applications.   Ashland expects the strategic review to be completed by the end of the 2021 calendar year. The company engaged Citi to assist in the strategic review process.