Covington, KY— Ashland Global Holdings Inc. announced in a press release that its subsidiary has signed a definitive agreement to acquire privately owned Pharmachem Laboratories, Inc., based in Kearny, NJ. As part of the terms of the stock purchase agreement, Ashland will pay a $660 million all-cash transaction expected prior to the end of the June quarter. Pharmachem has 14 facilities in the United States and Mexico, bringin in an annual revenue of approximately $300 million. Nutrition and health make up 43% of their sales, fragrance and flavors make up 33%, Food, beverage and personal care account for 15%, and custom manufacturing 9%.

“The acquisition of Pharmachem offers a number of exciting growth opportunities in higher-margin end markets while also strengthening our specialty product line,” said William A. Wulfsohn, Ashland chairman and chief executive officer in the press release. “This combination will enhance our position in fast-growing nutraceutical end markets, open a new opportunity within fragrances and flavors, and strengthen Ashland's food ingredient business by adding customized functional solutions.”

“This is a great strategic fit for Pharmachem as we look to build on our well-established track record of growth and financial performance,” states Colin MacIntyre, Pharmachem chief executive officer in the press release. “We have the opportunity to create something unique in our industry by combining Pharmachem's custom manufacturing capabilities with Ashland's formulation knowledge and excipients expertise.”