Specialty chemicals firm Ashland weighs sale amid activist push, sources say

Ashland's decision to explore a sale comes after months of pressure from activist investor Ancora Alternatives, which disclosed a stake in the specialty chemicals company in June.

Ancora argued a transaction could boost Ashland's share price by at least 30% and estimated the stock could be worth at least $76 a share in a takeover.

Ancora's campaign tapped into a broader debate across the chemicals industry, where weak post-pandemic demand and muted growth prospects have weighed on valuations, the person said.

Industry dealmakers say some chemical companies are increasingly considering sales as an alternative to remaining public, arguing that buyers or private-equity owners may place a higher value on specialty assets than public markets do.

Ashland, whose products are used in pharmaceuticals, personal care and specialty ingredients, fits that profile, as does Element Solutions, which agreed to be acquired by Solstice Advanced Materials in a roughly $14.5 billion cash-and-stock deal.

Apollo, Ashland, Citi and Standard Industries did not immediately respond to Reuters' request for comment, while Carlyle, Lazard and Advent declined to comment.

Chemical maker Ashland is exploring a sale after coming under pressure from activist investors who argued the company was undervalued, according to a person familiar with the matter, who declined to be named as the information is private.

Ashland is working with Citigroup and Lazard, Bloomberg News reported on Friday, citing people familiar with the matter.

The report said private equity firms including Advent, Apollo Global Management, Carlyle Group and Standard Industries have had contact with the chemical maker.