Ashland Inc., Covington, Ky., signed a definitive agreement to purchase the assets of Northwest Coatings of Oak Creek, Wis., a formulator and manufacturer of adhesives and coatings employing ultraviolet and electron beam (UV/EB) polymerization technologies. Northwest Coatings is a holding of Caltius Equity Partners. The transaction, which includes production facilities in Milwaukee and Greensboro, N.C., is valued at approximately $72 million. Trailing 12-month sales of Northwest Coatings are nearly $40 million.
"This is an important acquisition for us in a high-growth, attractive market segment," said James J. O'Brien, Ashland Inc. chairman and chief executive officer. "It demonstrates our strategy to pursue acquisition opportunities in markets and technologies that are experiencing rapid change."
Marcello Boldrini, vice president, Ashland Performance Materials, and general manager, Specialty Polymers & Adhesives (SP&A), commented: "With this transaction we strengthen our adhesive and coatings offerings to the packaging, converting and labeling markets. Northwest is a leader in ultraviolet and electron beam chemistries, and we expect to leverage these technologies throughout our business on a worldwide basis." He added, "The investment will further enhance Ashland's reputation as a first-tier provider of specialty adhesives."
Closing of the acquisition, which is anticipated to take place before the end of 2006, is dependent upon a number of standard closing conditions, including regulatory review.