Ashland to sell ingestibles business to Mitsubishi

01-Sep-2004

Ashland Inc. announced it has signed an agreement to sell the ingestibles line of business of Ashland Distribution - which includes food and beverage additives and pharmaceutical actives and excipients - to Mitsubishi Corporation (MC). The transaction is expected to be completed by Dec. 31, 2004. Ashland Distribution will continue to service customers in the personal care and cosmetics industries.

"The sale of the ingestibles business to Mitsubishi allows us to further sharpen our focus on businesses that are central to our core business," said Hank Waters, president, Ashland Distribution. "The ingestibles line of business represents less than 4 percent of Ashland Distribution's total sales, and there is not much overlap between it and our other lines of business. We believe that the business, and its employees, will be much better off as part of an organization that has a strong commitment to this line of business."

Mitsubishi Corporation is adding more resources to its established food ingredients business. Mitsubishi Corporation's food ingredient sales are nearly $500 million worldwide. Trading over $35 billion annually in foods and general merchandise, MC's food-related products are positioned as a core business. "We view this acquisition as a strategic opportunity to access more customers in North America and add value to our existing business," said Kenichiro Yagasaki, general manager, Life Sciences Product Unit of Mitsubishi Corporation.

Ashland and Mitsubishi also will enter into a transition services agreement under which Ashland will continue to provide warehousing, customer service and select administrative support. In preparation for closing, both Ashland and Mitsubishi will manage a seamless transition with minimal disruption to suppliers, customers and employees.

https://www.chemeurope.com/en/news/39370/ashland-to-sell-ingestibles-business-to-mitsubishi.html