Valvoline owners, Ashland Inc, has sold its global distribution business to buyout group, TPG Capital.
The deal, worth $930m, hands the Kentucky-based organisation's entire distribution network to TPG. According to Ashland's Chairman and CEO, James J. O'Brien, the move completes the organisation's rationalisation to secure it as a "high-performing speciality chemicals company." O'Brien also believes the prospects for the distribution arm will be "much stronger as part of an organization targeting growth within the distribution marketplace.”
Ashland Distribution became part of Ashland Inc more than 40 years ago and currently generates revenues in the region of $3.4bn, with some 2,000 employees in North America and Europe.
The deal is expected to be completed by March 2011, with TPG Capital adding Ashland Distribution to a portfolio of investments that already includes Marathon Oil's Minnesota-based assets (under contract American Tire Distributors and a number of energy companies.