Ashland Inc. (Covington, Ky., USA) on March 31 announced that it has closed the sale of its global distribution business, known as Ashland Distribution, to Nexeo Solutions LLC, an affiliate of TPG Capital, for a purchase price of approximately $979 million in cash, including an adjustment for estimated closing net working capital, plus the assumption of certain specified liabilities. The purchase price is subject to post-closing adjustment for the difference between estimated and actual closing net working capital. With approximately 2,000 employees, the business generated revenues of $3.4 billion in fiscal year 2010.
Commenting on the transaction, chairman and CEO James J. O'Brien said, "This transaction signifies our sharpened focus as a high-performing specialty chemicals company. It also is consistent with our overall goal to return maximum long-term value to our shareholders."
Noting further opportunities, O'Brien added, "As we move forward, we are well-positioned to invest in and grow our business, and we intend to do so."
Effective with the divestiture, approximately 42 percent of Ashland's sales are now derived from outside North America, with nearly 20 percent originating in the high-growth regions of Latin America and Asia Pacific.