Chemicals maker Ashland Inc , known for its Valvoline motor oil, plans to purchase privately owned International Specialty Products for about $3.2 billion as it eyes more sales from the high-margin personal care, pharmaceuticals and energy markets. Global chemicals majors, including U.S. No. 1 Dow Chemical , Saudi Basic Industries and Germany's BASF SE (BASFn.DE), have reported strong results as the global economy recovers and are eyeing deals to boost their sales. Covington, Kentucky-based Ashland manufactures a wide range of specialty chemicals and materials for the packaging and water purification industries. Like many of its peers, including Dow Chemical, Ashland has slowly been moving away from the low-margin, cyclical commodity chemicals sector. Buying International Specialty (ISP) -- which produces more than 500 specialty chemicals that cater to markets ranging from personal care and pharmaceuticals to energy and plastics -- will take Ashland closer to its previously stated goal of tapping more high-margin markets.
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