 "Ashland to sell Valvoline's car-care products assets to Highlander Partners")
Ashland Inc has sold off Valvoline’s car-care products assets - including manufacturing and distribution facilities in Hernando (Mississippi) - to Niteo Products LLC, a newly formed affiliate of Highlander Partners LP (a Dallas-based private investment firm with over $1 billion of assets under management) for an undisclosed amount. The transaction is expected to close within 90 days, subject to certain standard closing conditions.
Car-care products, which represented less than four percent of Valvoline's $2 billion in sales for the 12 months ended December 31, 2014, includes the brands such as Car Brite professional automotive detailing products; Eagle One consumer detailing products; and
Pyroil automotive maintenance chemicals.
Also included in the sale are Valvoline-branded and private-label maintenance chemicals sold into the DIY channel.
“The proceeds from the sale of this non-strategic asset will be reinvested in generating more rapid, profitable growth within our core lubricants business, such as through the continued expansion of our Valvoline Instant Oil Change store base," said Sam Mitchell, Ashland senior vice president and Valvoline president.
Jeff Hull, managing partner of Highlander and chairman of Niteo, said, “We have been targeting investments in the consumer products and specialty chemical sectors for some time. As an investment group with a long-term time horizon, we believe the automotive chemicals segment provides an excellent opportunity for long-term growth.”
Car-care products, which represented less than four percent of Valvoline's $2 billion in sales for the 12 months ended December 31, 2014, includes the brands such as Car Brite professional automotive detailing products; Eagle One consumer detailing products; and
Pyroil automotive maintenance chemicals.
Also included in the sale are Valvoline-branded and private-label maintenance chemicals sold into the DIY channel.
“The proceeds from the sale of this non-strategic asset will be reinvested in generating more rapid, profitable growth within our core lubricants business, such as through the continued expansion of our Valvoline Instant Oil Change store base," said Sam Mitchell, Ashland senior vice president and Valvoline president.
Jeff Hull, managing partner of Highlander and chairman of Niteo, said, “We have been targeting investments in the consumer products and specialty chemical sectors for some time. As an investment group with a long-term time horizon, we believe the automotive chemicals segment provides an excellent opportunity for long-term growth.”