Ashland splits into 2 companies

Ashland Inc. announced that its board of directors has approved to proceed with the plan to separate Ashland into two independent, publicly traded companies. One of the companies will retain the Ashland name and serve the speciality chemicals sector while the other company, Valvoline, will focus on lubricants.  

The new Ashland will serve customers in a  wide range of consumer and industrial markets. These markets are currently served by Ashland's Chemicals Group, comprising Ashland Specialty Ingredients and Ashland Performance Materials. Key markets and applications include pharmaceutical, personal care, food and beverage, architectural coatings, adhesives, automotive, construction and energy.

Valvoline will focus on building the world's leading engine and automotive maintenance business by providing hands-on expertise to customers in each of its primary market channels: Do-It-Yourself (DIY); Installers; Valvoline Instant Oil ChangeSM; and International. The globally recognized brand will soon celebrate its 150th anniversary. Valvoline currently ranks as the #2 quick-lube chain and #3 passenger car motor oil brand in the United States.

Ashland will begin the process to separate its specialty chemicals and Valvoline businesses while it finalizes the transaction structure and obtains customary regulatory and other approvals. The company intends for the separation, which is subject to final board approval prior to completion, to be tax free for Ashland shareholders. Immediately following the separation, Ashland shareholders will own shares of both the new Ashland and Valvoline.