Ashland Sells Valvoline Business to Niteo
US specialty chemicals producer Ashland has agreed to sell the car-care products of its Valvoline business to Niteo, a subsidiary of private equity firm, Highlander Partners. The deal, expected to close in 90 days time, includes the manufacturing and distribution assets in Hernando, Mississippi. Financial terms were not disclosed.
Car-care products represent less than 4% of Valvoline's sales which were $2 billion for the year ended December 31, 2014. They include the brands Car Brite, Eagle One and Pyroil. Also included in the sale are Valvoline-branded and private-label maintenance chemicals sold into the do-it-yourself (DIY) sector.
Sam Mitchell, Ashland's senior vice president and Valvoline's president, said: "The proceeds from the sale of this non-strategic asset will be reinvested in generating more rapid, profitable growth within our core lubricants business."
Jeff Hull, managing partner of Highlander and chairman of Niteo said: "As an investment group with a long-term time horizon, we believe the automotive chemicals segment provides an excellent opportunity for long-term growth." He added that the Valvoline assets will provide the foundation for a "strong buy and build platform".