Derakane sold for $92 million

Ashland Composite Polymers has signed an agreement to purchase Dow Chemical Company’s derakane epoxy vinyl ester resin business for $92 million.

Ashland Composite Polymers has signed an agreement to purchase the derakane epoxy vinyl ester resin business, which includes the derakane momentum product line, from the Dow Chemical Company for $92 million. According to Dow, derakane resins achieve annual sales of approximately $70 million.

“We successfully built the derakane business into a global industry leader,” said Juan Antonio Merino, general manager of Dow’s Thermoset Systems business.

“However, in today’s environment, continued success would require us to broaden our market participation and product offering,” added Merino. “This would involve investing in polyester, which lies outside of our established core capabilities.”

The purchase includes all technology assets associated with the derakane business. No physical assets will transfer to Ashland.

Closure of the transaction, which is anticipated to take place in late 2004 or early 2005, is conditional upon a number of closing conditions, including several regulatory reviews.