TORONTO - Ashland Chemical Co. of Dublin, Ohio, plans to boost its reinforced plastics business in Canada by acquiring Owens-Corning Fiberglas Corp.'s composite material distribution business based in Toronto. Ashland Chemical Canada Ltd. of Mississauga, Ontario, already makes thermoset polyester resins and sells directly to Canadian customers, said Bill Merz, vice president and general manager for Ashland's FRP Supply Division.
The acquisition would be the Supply Division's first operation in Canada, and would give it immediate access to the market, Merz said. He added that it is too early to say how the acquired business would be integrated with Ashland Chemical Canada.
The Owens-Corning distribution business includes resins, glass-fiber reinforcements, gel coats, tooling and other materials made by Owens-Corning, Alpha/Owens-Corning, Ashland and other manufacturers.
Ashland expects to finalize the deal in July. Officials from both firms did not disclose terms of the letter of intent to purchase or the size of the distribution business. It includes four warehouses in the provinces of Ontario, Quebec, Alberta and Manitoba.
Owens-Corning plans the sale to help it focus on manufacturing and marketing glass and other composite materials. It manages the Canadian FRP division from its Toledo, Ohio, headquarters.