EXHIBIT 99.1
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News Release Ashland Logo
FOR FURTHER INFORMATION:
Media Relations
Jim Vitak
(614) 790-3715
jevitak@ashland.com
FOR IMMEDIATE RELEASE:
March 30, 2006
ASHLAND SIGNS AGREEMENT TO ACQUIRE
DEGUSSA WATER TREATMENT BUSINESS
COVINGTON, Ky. - Ashland Inc. (NYSE: ASH) announced today that it has
signed a definitive agreement to purchase the water treatment business of
Degussa AG, branded under the Stockhausen name, in a transaction valued at
approximately $144 million (120 million euros). Five manufacturing
facilities located in Germany, China, Brazil, Russia and the United States
are included in the transaction. The Degussa water treatment business
posted 2005 sales of nearly $250 million.
"This transaction demonstrates Ashland's continuing strategy to build
shareholder value by expanding our products, services and geographical
reach in market segments where we already compete," said James J. O'Brien,
chairman and chief executive officer of Ashland. "Water management is an
essential and growing part of the world economy, and the addition of the
Degussa water treatment business to Ashland will help us participate in
that growth."
"This acquisition expands our technology base, product line and
service levels -- strengths that already distinguish us and that we
continue to build upon," said Len Gelosa, senior vice president, Water
Technologies, Ashland Specialty Chemical, a division of Ashland Inc. "It
also helps us develop our presence in the important BRIC nations (Brazil,
Russia, India and China) where the economic future offers significant
potential for growth."
The closing, which is anticipated to take place in May 2006, is
conditional upon a number of standard closing conditions, including
regulatory review.
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ASHLAND SIGNS AGREEMENT TO ACQUIRE DEGUSSA WATER TREATMENT BUSINESS p.2
Degussa Management Board Chairman Prof. Utz-Hellmuth Felcht said, "Our
Water Chemicals business is an ideal strategic complement to Ashland's
portfolio. We have passed our business into good hands."
Ashland Water Technologies, a business of Ashland Specialty Chemical,
is a supplier of specialty products and consulting services to the
manufacturing and institutional markets through its Drew Industrial
business group and a leading supplier to the global marine industry through
its Drew Marine business group. Drew Industrial provides industrial,
commercial and institutional water treatments, wastewater treatment,
pathogen control, paint and coating additives, pulp and paper processing
and mining chemistries. Drew Marine provides boiler and cooling water
treatments, fuel treatments, welding, refrigeration and sealing products;
and fire fighting, safety and rescue products and services.
Ashland Specialty Chemical, a division of Ashland Inc., is a leading,
worldwide supplier of specialty chemicals serving industries including
adhesives, automotive, composites, metal casting, merchant marine, paint,
paper, plastics, watercraft and water treatment. Visit www.ashspec.com to
learn more about these operations.
Ashland Inc. (NYSE: ASH) is a Fortune 500 chemical and transportation
construction company providing products, services and customer solutions
throughout the world. To learn more about Ashland, visit www.ashland.com.
FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements, within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934, with respect to Ashland's operating
performance. These estimates are based upon a number of assumptions,
including those mentioned within this news release. Such estimates are also
based upon internal forecasts and analyses of current and future market
conditions and trends, management plans and strategies, weather, operating
efficiencies and economic conditions, such as prices, supply and demand,
cost of raw materials, and legal proceedings and claims (including
environmental and asbestos matters). Although Ashland believes its
expectations are based on reasonable assumptions, it cannot assure the
expectations reflected herein will be achieved. This forward-looking
information may prove to be inaccurate and actual results may differ
significantly from those anticipated if one or more of the underlying
assumptions or expectations proves to be inaccurate or is unrealized or if
other unexpected conditions or events occur. Other factors and risks
affecting Ashland are contained in Ashland's Form 10-K for the fiscal year
ended Sept. 30, 2005. Ashland undertakes no obligation to subsequently
update or revise the forward-looking statements made in this news release
to reflect events or circumstances after the date of this release.
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