Specialty chemical company Ashland announced Tuesday that it has completed the purchase of chemical manufacturer International Specialty Products in a $3.2 billion all-cash deal.
"This defining transaction ... will significantly expand our position in higher-margin, higher-growth end markets, including personal care, pharmaceutical, food and beverage, and energy," Ashland CEO James J. O'Brien said in a statement.
In 2010, ISP, which was privately owned, had $1.53 billion in sales and $263 million in operating income.
Ashland previously said it expects to save $50 million annually by the second year of the deal by eliminating redundancies and seeking other efficiencies.
The purchase will strengthen the company's patent portfolio and its team of researchers, because ISP has more than 400 active patents and about 275 scientists globally, executives have said.
When the purchase was announced, O'Brien emphasized how products made by Ashland and ISP complement each other. For instance, ISP makes chemicals that are fixatives for hair gels and hair sprays, while Ashland produces shampoo thickeners and conditioners.
"We are excited about combining ISP's technologies and capabilities with our own," O'Brien said Tuesday. "This acquisition enhances our ability to ... continue to generate industry-leading innovation."
ISP's North American manufacturing sites include one in Calvert City, in Western Kentucky.