NEW YORK: Ashland Inc says it has reached a settlement with activist investor Ancora Holdings Group that expands the chemical company’s board of directors.
Ashland has appointed two directors, Peter Thomas and Allen Spizzo, to its board, the company said on Tuesday in a statement, confirming an earlier Bloomberg News report.
With the appointments, Ashland’s board has 11 directors but it plans to reduce the number to 10 at next year’s annual shareholder meeting, according to the statement.
The company said the board is also creating a capital allocation committee as part of the agreement, which will extend until the company’s 2028 annual meeting.
The agreement comes less than two months after Ancora said it had built a stake in Ashland and was pushing the company to sell itself.
Ancora said at an activist conference in June that a sale could boost Ashland’s share price by at least 30%.
Ancora chief executive officer (CEO) Fred DiSanto and Jim Chadwick, president of the Ancora Alternatives investing arm, said the board appointments and the new committee give them “significant confidence” as the company moves forward.
“Ashland has exceptional assets and strong opportunities in front of it,” they said in the statement.
Thomas previously served as chairman, CEO and president of chemical manufacturing company Ferro Corp.
Spizzo was vice-president and chief financial officer of chemical manufacturer Hercules Inc, which was acquired by Ashland in 2008. The two will stand for election at the next annual meeting, Ashland said.
The two new directors will join the new advisory committee, which will make recommendations to the board on strategic planning and capital allocation.
“Their independent perspectives, combined with our current directors’ deep knowledge of Ashland business, strategy and financials, will support our continued focus on enhancing stockholder value,” Ashland chairman and CEO Guillermo Novo said in the statement.
Novo will be a non-voting member of the allocation committee.
Ashland makes additives and specialty ingredients that are used in the pharmaceutical and personal care markets, among others.
The company, based in Wilmington, Delaware, reported a 7% year-on-year increase in sales and net income of US$16mil for the quarter ended June 30.
Shares of Ashland closed at US$68.01 on Tuesday in New York trading, giving the company a market value of about US$3.1bil. Its stock, which slumped 18% in 2025, has gained 16% this year. — Bloomberg
