Chemical company Ashland to buy International Specialty Products for $3.2 bln

US-based chemical company Ashland Inc yesterday said it would acquire specialty-chemicals supplier International Specialty Products Inc. (ISP) for $3.2 billion in cash, a move designed to expand into chemicals for skin and hair-care products and pharmaceuticals.

Kentucky-based Ashland, a Fortune 500 company will pay privately-held ISP approximately $3.2 billion in an all-cash transaction. The acquisition of ISP will expand Ashland's position in high-growth markets such as personal care, pharmaceutical and energy.

New Jersey-based ISP Wayne  is a global supplier of specialty chemicals and performance-enhancing products for a wide variety of consumer and industrial markets including personal care, pharmaceuticals, beverage, home care, coatings and adhesives, energy, agriculture, plastics, tires and others.

The company has around 2,700 employees serving more than 6,000 customers in 90 countries and for the 12 months ended 31 March 2011, it generated sales of approximately $1.6 billion.

Through its network of manufacturing sites, ISP produces more than 500 specialty chemicals, which it markets and sells worldwide. ISP has more that 275 scientists worldwide including global research centres in New Jersey; Sofia Antipolis, France; Bradford, UK; Hyderabad, India and Shanghai, China.

The acquisition is expected to strengthen Ashland's functional ingredients, active patent portfolio and its specialist research and development scientists.