Dow offers to acquire Ascot Plc
The transaction structure calls for Ascot to divest its property business. Dow plans to integrate the Fine Chemicals and Specialty Chemicals businesses of Ascot into Dow's Performance Chemicals' business group. Dow anticipates the transaction to close during the second quarter of this year. Ascot's annual chemical sales are approximately $335 million (£221 million).
Ascot's Specialty Chemicals and Fine Chemicals businesses include:
- Haltermann Custom Processing: Haltermann is a world leader in custom chemical processing, operating plants in Belgium, Germany, the United States and the United Kingdom. Haltermann works with many of the world's leading petrochemical and specialty chemical companies using continuous and batch distillation and reaction to provide its custom processing services.
- Haltermann Products: Located in Germany with sales offices in Belgium, Romania, Sweden, France and the United Kingdom (as well as more than 40 agents and distributors), Haltermann's major customers are in the automotive, graphic arts, chemical and pharmaceutical industries. Its main products are printing ink distillates, ultra pure solvents, performance esters, reference fuels, low-boiling hydrocarbons and surfactants.
- Chirotech: Chirotech is a leader in chiral technology, which enables the manufacture of drugs with higher efficacy and lower side effects. Its main products, which consist of single isomer scaffolds and building blocks for drug discovery, advanced intermediates and active pharmaceutical ingredients, are primarily sold to some of the world's major pharmaceutical companies.
- Mitchell Cotts: Mitchell Cotts' customers are major companies in the pharmaceutical and agro-chemical industries for whom it manufactures higher value chemical materials under contract and also undertakes process development work.
"We are delighted to reach agreement with the Board of Ascot Plc to acquire this leader in chiral and distillation technologies," said Andrew Liveris, Business Group President of Dow's Performance Chemicals' business group. "Ascot's custom manufacturing business expands and strengthens our already strong Contract Manufacturing Services business. Ascot's fine and specialty chemical products are complementary to our existing portfolio and extend our ability to provide solutions in key industries. We consider this a strong combination that will create significant value for Dow shareholders."
"I am delighted that we have reached agreement with Dow for a recommended offer," stated Howard Dyer, Chairman of Ascot Plc. "In considering the approach from Dow for Ascot, Ascot's board concluded that the interests of our shareholders, employees, and customers would be best served by combining Ascot's core business with a leading science and technology company which could enjoy greater economies of scale and market access in an industry that is experiencing rapid consolidation."
About Ascot Plc
Ascot Plc, headquartered in London, is a significant specialty and fine chemicals producer. For more information on Ascot Plc, visit www.ascotplc.co.uk.
About Dow
Dow is a leading science and technology company that provides innovative chemical, plastic and agricultural products and services to many essential consumer markets. After completion of the recent transaction with Union Carbide Corporation, Dow has annual sales of approximately $30 billion and employs approximately 50,000 people. The company serves customers in more than 170 countries and a wide range of markets that are important to human progress, including food, transportation, health and medicine, personal care, and building and construction, among others. The company has 171 manufacturing sites in 35 countries and supplies more than 2,500 products. For further information about Dow, visit www.dow.com
Source: Dow Chemical
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