ASHLAND PURCHASES DERAKANE EPOXY RESIN BUSINESS FROM DOW

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ASHLAND PURCHASES DERAKANE EPOXY RESIN BUSINESS FROM DOW
05 November 2004 - Ashland Specialty Chemical Company

Ashland Composite Polymers has purchased the Derakane epoxy vinyl ester resin business from The Dow Chemical Company in a transaction valued at approximately $92 million. The deal is anticipated to take place in late 2004 or early 2005.

Ashland Composite Polymers has purchased the Derakane epoxy vinyl ester resin business from The Dow Chemical Company in a transaction valued at approximately $92 million. The purchase includes all technology assets associated with the Derakane business. No physical assets will transfer to Ashland. The closing, which is anticipated to take place in late 2004 or early 2005, is conditional upon a number of standard closing conditions, including several regulatory reviews.

Annual sales of Derakane resins are approximated at $70 million (USD). The proven performance of Derakane and Derakane Momentum technologies for use in fibre reinforced plastics (FRP) applications requiring outstanding corrosion resistance and structural strength complements Ashland’s current product portfolio of thermoset resins.

“Over the past two years, Ashland has spent a significant amount of time refining its portfolio of businesses and focusing on technologies – such as thermoset chemistries – that are core to the company’s long-term, strategic focus,” said Ted Harris, vice president, Ashland Specialty Chemical, and general manager, Composite Polymers. “Ashland’s purchase of the Derakane resin business is in direct alignment with our long-term strategy to develop integrated systems and technology solutions that offer superior value to our customers.”

“We successfully built the Derakane business into a global industry leader,” said Juan Antonio Merino, general manager of Dow’s Thermoset Systems business. “However, in today’s environment, continued success would require us to broaden our market participation and product offering. This would involve investing in polyester, which lies outside of our established core capabilities. We are pleased to have found a strategic buyer with the business model required to strengthen and maximize the value of the business and give customers a strong and proven supplier for the future. We will work with Ashland and customers to ensure a smooth transition.”

http://www.ashchem.com/ascc/compoly/

About: Ashland Specialty Chemical Company
Ashland is a transportation construction, chemical, and petroleum company providing innovative products, services and solutions. A Fortune 500 company, we have sales and operations throughout the United States and in more than 120 countries around the world. Our operations include four wholly owned divisions: Ashland Paving And Construction (APAC), Ashland Distribution, Ashland Specialty Chemical and Valvoline. In addition, we own 38 percent of Marathon Ashland Petroleum LLC, the nation's fifth largest refiner and marketer of petroleum products.

Ashland Composite Polymers is a leading worldwide resin and gel coat supplier, serving the fiber reinforced plastics and cast polymer industry.

Ashland has invested many years of research into the development of specifically tailored products that together represent the broadest product line in the industry. Primary research and development activities are based at our company headquarters in Dublin, Ohio, USA working closely with our R&D and Product Development teams in Europe and Asia.

The full line of products, services and technology includes: Hetron epoxy vinyl ester, corrosion-resistant and fire retardant resins; Arotran world leading resin technology for the automotive market; award-winning Maxguard gel coats; Aropol polyester resins; AME premium marine resins; Modar modified acrylic resins; and Polaris resins for solid surface and cast marble.

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