WILMINGTON, Del. - Ashland Inc . (NYSE: NYSE:ASH), a global additives and specialty ingredients company with a market capitalization of $3.37 billion, has entered into a definitive agreement to sell its Avoca business to Mane, a leading producer and supplier of fragrances and flavors. The transaction is slated for completion in the first quarter of 2025, pending customary closing conditions. According to InvestingPro analysis, Ashland currently trades near its 52-week low, suggesting potential value opportunity for investors.
The Avoca business, which focuses on the production of Sclareolide, a fragrance fixative, operates from two manufacturing sites in North Carolina and Wisconsin. This sale marks the divestiture of the last remaining entity from Ashland's prior acquisition of Pharmachem.
Guillermo Novo, chair and chief executive officer of Ashland, acknowledged the contributions of the Avoca team, stating, "The Avoca business is a strong player in the fragrance fixative space with a dedicated team and attractive manufacturing capabilities to meet customer needs."
Legal advisory for the transaction is being provided by Squire Patton Boggs.
This news is based on forward-looking statements, and while Ashland has expressed confidence in the expected closing timeframe, it has also noted the potential for variability due to various risks and uncertainties.
Ashland, known for its commitment to environmental, social, and governance (ESG) principles, operates in over 100 countries and employs approximately 3,200 individuals. The company's diverse market reach includes sectors such as architectural coatings, construction, energy, food and beverage, personal care, and pharmaceutical. InvestingPro data reveals the company maintains strong financial health with a current ratio of 2.44 and has maintained dividend payments for an impressive 54 consecutive years. Discover more insights about Ashland's financial strength and growth potential with InvestingPro's comprehensive research report, part of its coverage of over 1,400 US stocks.
Mane, a family-owned company established in 1871, stands as a significant player in the global fragrances and flavors market, operating 29 production facilities worldwide and employing over 8,000 staff.
The information for this article is based on a press release statement.
In other recent news, Ashland Inc. has been the subject of several analyst reviews and internal changes. Mizuho (NYSE:MFG) Securities adjusted its price target for Ashland from $95.00 to $85.00, maintaining an Outperform rating. BMO Capital Markets slightly raised its price target to $84.00, while Deutsche Bank (ETR:DBKGn) reduced its price target to $90, both firms holding their respective ratings.
Ashland recently announced its three-year targets, which include mid-single-digit percentage organic sales growth and up to a 400 basis points improvement in margins. Despite a slower start to the year, Ashland is maintaining its EBITDA midpoint guidance for fiscal year 2025 at $450 million and has set an ambitious fiscal year 2027 EBITDA target of $600 million.
In other company news, Ashland's CFO, J. Kevin Willis, has joined the board of directors at Ingevity (NYSE:NGVT) Corporation. Furthermore, Ashland announced the departure of its Vice President, Finance and Principal Accounting Officer, Eric F. Boni.
These are recent developments that highlight Ashland's strategic focus on improving its competitive positioning amidst economic uncertainties. The company's future performance will largely depend on the successful execution of these strategies and the revival of market demand.
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