COVINGTON, US: Ashland Global Holdings Inc (ASH) said that its subsidiary has completed the previously announced acquisition of privately owned Pharmachem Laboratories Inc. Pharmachem is a leading provider of quality ingredients to the global health and wellness industries and high-value differentiated products to fragrance and flavour houses.
Under terms of the stock purchase agreement, Ashland paid $660 million in an all-cash transaction, funded from a combination of cash on hand and proceeds of a borrowing under its existing securitization facility, a new 3-year senior secured term loan A facility, a new 5-year senior secured term loan facility and a new 5-year senior secured revolving credit facility. The acquisition is expected to be accretive to Ashland’s earnings per share in the first year following the close of the transaction.
“The addition of Pharmachem offers attractive growth opportunities in higher-margin end markets and strengthens our existing business with advanced processing know-how and formulation expertise,” said William Wulfsohn, Ashland chairman and CEO.
“We believe this combination will enhance our position in fast-growing nutraceutical end markets, open a new opportunity within fragrances and flavours, and strengthen Ashland’s food ingredient business by adding customised functional solutions. In addition, we expect to leverage our extensive sales channels, technical service network and global applications labs to accelerate Pharmachem’s growth,” added Wulfsohn.
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