COVINGTON, KY -- Ashland Inc. announced it will buy Hercules Inc. for $2.6 billion.

Ashland will pay $18.60 in cash and a 0.093 share of Ashland stock for each share of Hercules stock, valuing that stock at $23.01 each, a 38% premium from Thursday's close. The deal will be financed by cash on hand and by committed debt from Bank of America Corp. (BAC) and Bank of Nova Scotia (BNS).

Ashland said the acquisition will boost its presence in the specialty chemical market. 
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