Ashland Inc. and International Specialty Products Inc. (ISP) have formed an agreement where Ashland will acquire ISP for $3.2 billion in an all-cash transaction. Ashland said ISP’s product portfolio will expand its product offerings in high-growth markets. For the 12 months ended March 31, ISP generated sales of approximately $1.6 billion and EBITDA of approximately $360 million. Based in Wayne, NJ, privately held ISP is a global supplier of specialty chemicals for consumer and industrial markets, including water-soluble polymers. The company’s product portfolio includes materials for coatings and adhesives, notably biocidal agents for in-can preservation and dry-film protection of paints and coatings. Ashland’s product mix includes materials for the food and beverage, energy, coatings, adhesives and water-treatment markets. Based in Covington, KY, Ashland, said the acquisition is expected to significantly strengthen its functional ingredients portfolio and its team of research and development scientists. The transaction is expected to close prior to the end of the third quarter.