US chemicals maker Ashland (Covington, Kentucky; www.ashland.com) reportedly is mulling whether to sell its chemicals and plastics distribution business. The Reuters news agency reports that Ashland has hired the Bank of America to advise on a possible sale, adding that both Ashland and the Bank of America declined to comment on the matter.

Ashland’s distribution business generated an Ebitda of about USD 73m in the 12 months leading up to 30 June. Reuters cited sources saying that the unit’s selling price could amount to seven times Ebitda, or more than USD 500m. The unit distributes chemicals, plastics and composite materials in North America as well as thermoplastics in Europe.

Ashland has been focusing increasingly on higher margin speciality chemicals, moving away from commodity chemicals. The company bought speciality chemicals and water technologies manufacturer Hercules for USD 2.6 bn in 2008.