Insider Interview with John Panichella, President of the new Ashland Specialty Ingredients.
On May 31, Ashland Inc. announced its intention to purchase
International Specialty Products Inc. (ISP) for $3.2 billion. The deal closed
on Aug. 23, and brought two players in the coatings industry together. When you
look at the acquisition, it reflects a combination of different functional
platforms for the industry.
As Ashland brought the newly acquired
company into its portfolio, it renamed the combined businesses Ashland
Specialty Ingredients. Over the next few months Ashland will continue
integrating the former ISP with its former Ashland Aqualon Functional
Ingredients commercial unit. John Panichella is president of the new Ashland
Specialty Ingredients. PCI took the opportunity to ask Mr. Panichella a few
questions about the acquisition and what the implications are for the coatings
industry.
PCI: How
does the acquisition of ISP change or enhance Ashland’s focus on the coatings
industry?
Panichella: There
are a number of ways that Ashland’s acquisition of ISP enhances our customer
offering to the coatings industry. First, consider our portfolio of additives
prior to the acquisition, which was centered on our flagship product lines,
Natrosol™ hydroxyethylcellulose and Aquaflow™ nonionic synthetic associative
thickeners. These rheology modifier technologies, along with our foam-control
additives (Drewplus™) and specialty surfactants (Dextrol™ and Strodex™), enable
coatings manufacturers to formulate water-based products with customized
rheology profiles that included creamy in-can feel, best-in-class spatter
resistance, excellent color reproduction, sag resistance and leveling
capabilities.
With the addition of ISP, the opportunity
emerges to bring a much broader portfolio of additive technologies to our
customers. The performance polymers from ISP for coatings include supplemental
rheology modifier chemistries as well as other technologies that can provide UV
stability and help disperse and stabilize color and intensity. In addition, the
ISP biocide portfolio brings a completely new functional category to the
Ashland portfolio, including both in-can and dry-film preservatives for the
prevention of fungus, mold and mildew.
The combined portfolio also includes numerous products for wood coatings
that include UV protection, color stabilization and rheology. Expanded access to
this new market segment is exciting for Ashland, and we will be working to
communicate our full portfolio of products and benefits to more customers and
market segments in the coming months.
You can see how expanding our offering beyond rheology, foam control and
surfactants makes for a broader and powerful combination of benefits for our
customers.
PCI: Will
any new technologies be brought to the table as a result of the
acquisition?
Panichella: Of
course we are optimistic that the combined expertise of both companies will
yield new technology and ultimately new products for our customers. We expect
to be looking closely at the technologies we each have and how best to bring
those together to identify potential technology synergies. As such, we are
looking forward to bringing the scientific expertise of both organizations
together. In addition, one of the attractive aspects of ISP was the robust
nature of their new product pipeline. Look for coming announcements.
PCI: What
does the acquisition mean for coatings formulators?
Panichella:This acquisition brings together two complementary technology
portfolios that can be offered from a single supplier. For formulators, this
means they will have fewer key supplier partners to manage and the convenience
of finding formulating solutions faster and easier, by dealing with a single
technical organization. We look forward to arranging technical seminars and
exchanges with our customers wherein we can demonstrate our expanded array of
technical expertise and capabilities. From a customer perspective, this will
really be powerful.
PCI: Availability
of products…will you increase or decrease production?
Panichella: There
should be no disruption of products or services as we integrate the two
organizations. There is very little overlap in products and services. Together
ISP and Ashland truly balance and supplement the overall product
offering.
PCI: How
will customers buy ISP or Ashland products?
Panichella: There are no immediate changes in any of our current business
activities, processes or relationships. Customers will continue to work with
the same sales, service and support on whom they have always depended; and the
selling legal entity with whom they do business will remain the same. All
products, product names/codes/brand names, packaging, labeling, MSDS, pricing,
etc. will be unchanged. No changes are being made to manufacturing locations,
manufacturing processes or product quality, nor will there be any changes in
the addresses on quality documentation such as Certificates of Analyses,
specifications, etc. For normal business or emergencies, current contact
points, offices, addresses, telephone numbers, etc. are still valid. Ordering,
delivery and invoicing processes, including documentation, do not change.
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