Dow agrees to buy Ascot to extend its specialty chemicals business
Dow Chemical has agreed terms for the acquisition of the Ascot, the UK-based maker of fine and speciality chemicals. The company is valued at US$438.1m (€493.6m).
Dow, which plans to integrate Ascot's chemical business divisions into its own performance chemicals business group, has been looking to expand its higher value speciality chemical business through acquisitions.
Ascot comprises a number of companies, including Haltermann Custom Processing, which supplies petrochemical, automotive and other industries, and its ChiroTech and Mitchell Cotts companies, which manufacture higher value chemicals for the pharmaceutical and agrochemical industries.
Commenting on the announcement Andrew Liveris, business group president, performance chemicals Dow, said, 'We are delighted to reach agreement with the board of Ascot to acquire this leader in chiral and distillation technologies. Their custom manufacturing business expands and strengthens our already strong contract manufacturing services.
'Ascot's fine and speciality chemical products are complementary to our existing portfolio and extend our ability to provide solutions in key industries.'
Howard Dyer, executive chairman of Ascot, said Ascot's board agreed to Dow's offer because the deal offered 'greater economies of scale and market access in an industry that is experiencing rapid consolidation'.
The deal requires the approval of Ascot shareholders and regulators but is expected to be completed by the end of the second quarter.
Pressure hydrogenation and particularly hydrogenation transfer catalysis are key technologies in the cost effective production of chiral alcohols, one of the most widely used classes of advanced intermediates in the synthesis of pharmaceutical actives.