Ashland Inc. (ASH) has announced plan to divest an elastomers unit and possible sale of a water-treatment business, moves that could cut around US$2 billion from the American chemical company's revenue.
The process for the sale of the elastomer tire-materials unit has already been initiated, Ashland reported in a statement on Thursday. The business, acquired along with the US $3.2 billion deal made for International Specialty Products, raises up to US$330 million in sales.
Kentucky-based Covington is also considering divestment as one of the possible options for the future of its water-treatment unit which earned US$1.73 billion in revenue the previous year.
"We are committed to unlocking value for Ashland shareholders," remarked Ashland Chief Executive Officer James O'Brien in a statement. "While Water Technologies' performance has improved this year, we believe that evaluating strategic options, including a possible sale, will help us determine the best path forward for this business."
Citigroup is providing advisory services to assist in the evaluation of options for water technologies, Ashland added.
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