Commenting on the transaction, chairman and CEO James J O’Brien said: “This divestiture reflects Ashland’s strategic direction and completes a major step in our multi-year transformation into a high-performing specialty chemicals company. Our overall goal remains to return maximum long-term value to our shareholders.
“For TPG, the purchase of Ashland Distribution represents an opportunity to acquire an industry-leading distributor with an established network of suppliers. I believe the outlook for the distribution business and its employees will be much stronger as part of an organisation targeting growth within the distribution marketplace.”
The Ashland Distribution business has been a part of Ashland for more than 40 years. With revenues today of $3.4bn, the Ashland Distribution business has approximately 2,000 employees across North America and Europe, and entered the China plastics market in 2009.
The transaction is expected to close prior to the end of the March quarter, dependent on the receipt of certain regulatory approvals and other standard closing conditions.
Source: Ashland Inc
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