Markets
ASH

Ashland Selling Valvoline Car-care Products to Highlander - Analyst Blog

A generic image of stock metrics
Credit: Shutterstock photo

Ashland Inc.ASH has landed a deal to jettison the car-care products assets of its renowned brand Valvoline to Niteo Products, LLC, a newly formed affiliate of private investment firm - Highlander Partners, L.P. Financial terms of the agreement were not divulged.

The assets to be acquired by Niteo will include manufacturing and distribution facilities in Hernando, MS. Roughly 140 people work in car-care products, including around 120 based at the manufacturing and distribution facilities in Mississippi. The transaction, which is subject to certain closing conditions, is expected to close within 90 days.

Car-care products, which accounted for less than 4% of Valvoline's 2014 revenues of $2 billion includes brands such as Car Brite, Eagle One and Pyroil. The divestment also includes Valvoline-branded and private-label maintenance chemicals sold into the Do-It-Yourself (DIY) channel.

Ashland plans to reinvest the proceeds from this assets sale in generating faster, profitable growth within its core lubricants business such as the expansion of its Valvoline Instant Oil Change store base. The company remains committed to invest in higher-return opportunities within Valvoline's core business.

Ashland offers specialty chemicals in more than 100 countries. With the closure of its Water Technologies unit sale last year, Ashland now has three commercial units - Specialty Ingredients, Performance Materials and Valvoline.

Ashland currently carries a Zacks Rank #3 (Hold).

Better-ranked companies in the specialty chemicals space include KMG Chemicals Inc. KMG , OM Group Inc. OMG and Chemtura Corporation CHMT . While both KMG Chemicals and OM Group sport a Zacks Rank #1 (Strong Buy), Chemtura carries a Zacks Rank #2 (Buy).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

ASHLAND INC (ASH): Get Free Report

CHEMTURA CORP (CHMT): Get Free Report

KMG CHEMICALS (KMG): Get Free Report

OM GROUP INC (OMG): Get Free Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

ASH

Other Topics

Stocks

Latest Markets Videos

    Zacks

    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

    Learn More