Ashland, a specialty chemicals company based in Covington, KY, has signed a definitive agreement to acquire privately owned Pharmachem Laboratories, Inc., a provider of ingredients to the global health and wellness industries and high-value differentiated products to fragrance and flavour houses.
With annual revenues of approximately US$300 million and 14 manufacturing facilities in the United States and Mexico, New Jersey-based Pharmachem sells to the following end markets: nutrition and health (43 percent of total sales), fragrance and flavours (33 percent), food, beverage and personal care (15 percent); and custom manufacturing (9 percent).
“The acquisition of Pharmachem offers a number of exciting growth opportunities in higher-margin end markets while also strengthening our specialty product line," said William A. Wulfsohn, Ashland chairman and chief executive officer. "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 customized functional solutions."
The US$660 million transaction, which is subject to customary closing conditions and required regulatory approvals, is expected to be completed before the end of the June quarter.