On June 9, Cleveland-based Ancora Holdings Group released a presentation arguing that Ashland's value would be best realized through a competitive sale process. The firm said it plans to engage with Ashland's board to assess its willingness to evaluate a strategic transaction versus continuing on its current path.

Reuters reported that Ashland's share price rose more than 6% on June 9, reaching $61.12 per share, as investors reacted to Ancora's presentation. According to Reuters, Ancora began building its stake after Ashland's stock declined following disappointing second-quarter earnings results.

Ancora's case centers on what it views as a mismatch between Ashland's business quality and market valuation. The firm describes Ashland's Life Sciences and Personal Care segments as the company's "crown jewels," noting that they generate roughly 75%-80% of total EBITDA and produce margins in the high-20% to 30% range. Ancora argues that these businesses benefit from long qualification cycles, high switching costs, deep customer relationships, and product "stickiness" that make them attractive acquisition targets for both strategic buyers and private equity firms.

Ashland responded on June 10, issuing a statement from its board saying it is committed to driving sustainable value creation for shareholders and welcomes constructive input. The company also stated that Ancora had not engaged with Ashland before releasing its presentation. Ashland said it "remains focused on its growth strategies to execute, globalize, innovate and invest while continuing to improve operational performance and cash generation." The company added that it believes these priorities will position Ashland to convert its transformation into sustained financial and operating performance, and that the board regularly evaluates the company's strategy and value-creation opportunities.

Ashland was previously a significant supplier of performance adhesives, but the company sold that business to Arkema in 2021 for $1.65 billion. Today, Ashland's role in the adhesives and sealants market is centered on specialty additives and ingredients used in adhesive and sealant formulations.

This marks the second time in recent weeks that Ancora has inserted itself into the adhesives and sealants sector. In May, the firm challenged H.B. Fuller's proposed acquisition of UK-based wound-care technology company Advanced Medical Solutions Group. Ancora, which holds approximately a 2% stake in H.B. Fuller, argued that the acquisition conflicted with the company's previously stated intention to pause major deals while reducing leverage to between 2.5x and 3.0x debt-to-EBITDA.