Ancora Urges Ashland Sale
Activist Investor Ancora Urges Ashland to Pursue Full Sale, Citing Significant Undervaluation
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Key Points
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Ancora began building its Ashland position after the stock fell in April on “weaker-than-expected quarterly results,” with the hedge fund citing pressure from concerns over earnings momentum and execution.
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Ashland’s customer base includes major consumer and pharma companies—such as L’Oréal, Estée Lauder, and Pfizer—according to reporting on Ancora’s campaign.
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Ancora’s case highlights Standard Investments (the investment arm of Standard Industries) as a key backer/participant: it holds “close to a 10% stake” and is Ashland’s largest investor, fueling speculation it could take part in any transaction.
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In its presentation, Ancora argues Ashland’s “crown jewels” are the Life Sciences and Personal Care segments, which it says represent ~75%–80% of total EBITDA and generate “stable EBITDA margins in the high-20s.” It also claims Ashland trades at a “conglomerate discount,” citing ~9.6x EV/EBITDA versus a historical median of ~11.0x.
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Ancora frames the sale path as not just upside but also premium/risk framing: it says the proposed outcome would represent “a more than 33% premium and likely the best risk-adjusted path forward,” and urges the board to evaluate standalone prospects versus a value-maximizing sale.
Activist hedge fund Ancora Alternatives has built a stake in Ashland Inc. and is publicly demanding the specialty chemicals company sell itself, arguing a deal could push shares up more than 33% to at least $76. Ancora released a formal presentation on June 8, 2026, calling for a "value-maximizing, competitive sale process" — and warning it will launch a proxy fight if the board does not act before September.
Ashland shares surged 8.5% the day after the campaign went public, according to CNBC. The stock had already been under pressure after Ashland missed earnings expectations in April, sending shares down roughly 12% in a single session.
Ancora Says Ashland's Best Assets Are Being Undervalued
Ancora's core argument is simple: Ashland's two best businesses are worth far more than the stock price suggests. Its Life Sciences and Personal Care segments together make up 75%–80% of total EBITDA, according to Ancora's presentation. Both run stable EBITDA margins in the high-20% range — strong numbers by any measure in the chemicals sector.
Yet Ashland trades at just 9.6x EV/EBITDA — a valuation metric that compares a company's total value to its earnings. Its historical median is 11.0x, and peers average 13.5x, per Bloomberg data cited in Ancora's filing. Ancora calls this a "conglomerate discount" — the market penalizing Ashland for owning a mix of businesses rather than focusing on one. Customers like L'Oréal, Estée Lauder, and Pfizer rely on Ashland for specialty ingredients, providing the stable, long-term contracts that make these assets attractive to buyers.
Standard Industries' 10% Stake Fuels Deal Speculation
The most closely watched player is Standard Investments, the investment arm of Standard Industries. It has built a stake of close to 10% in Ashland, making it the company's largest shareholder, according to Hedgeweek. Standard's co-CEOs David Millstone and David Winter have a track record of chemicals deals — the firm previously acquired W. R. Grace.
Ancora frames Standard's involvement as a "critical catalyst" for a transaction. The Wall Street Journal reported that Ancora spent May consulting with major shareholders, including Standard, as it built its case. Whether Standard would lead a take-private bid or participate in a broader sale process remains unclear — but its presence adds real weight to Ancora's campaign.
Ashland Pushes Back, Board Eyes Buybacks as Defense
Ashland CEO Guillermo Novo has not embraced the sale push. "We remain confident in our standalone strategy to drive high-margin growth," he said in an official statement. Management argues the low valuation reflects a temporary "post-COVID destocking cycle" hitting the whole chemicals industry — not a permanent problem with the business.
Behind the scenes, sources close to the board told The Wall Street Journal that Ashland is working with Goldman Sachs on a defense strategy. Options reportedly include a large share buyback or an accelerated cost-cutting plan — moves designed to lift the stock without agreeing to a sale. Jefferies analysts said Ancora's $76 price target is "aggressive but not unfounded," citing a sum-of-the-parts analysis that also points to higher value than the current share price.
Proxy Fight Looms If No Progress by September
Ancora has set a hard deadline. The hedge fund says it will move to nominate its own board directors if Ashland does not show "meaningful progress" before the September 2026 director nomination window, according to Investing.com. Ancora's president James Chadwick said the public market is "clearly failing to value" Ashland's Life Sciences and Personal Care segments correctly, calling a competitive sale "the only way to close this massive valuation gap."
The broader stakes go beyond Ashland. Morgan Stanley analysts suggest a full sale may not be the most likely outcome — a "break-up" splitting Life Sciences from Industrial Specialties could yield an even higher total return, since the two units appeal to very different buyers. Either way, a deal of this size could draw antitrust scrutiny from the FTC and European Commission, given how much of the global pharmaceutical excipients supply chain runs through Ashland's facilities.
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