TPG Capital To acquire ashland distribuTion for $930 Million

摘要

Ashland has signed a definitive agreement to sell its global distribution business to TPG Capital (Fort Worth, TX) for $930 million. The business has sales of $3.4 billion with approximately 2,000 employees. The deal is expected to close by the end of March, dependent upon the receipt of certain regulatory approvals and other standard closing conditions. The business distributes chemicals, plastics and composite raw materials in North America, and plastics in Europe and China. The business also provides environmental services in North America, including hazardous and nonhazardous waste collection, recovery, recycling and disposal services. Ashland Distribution posted revenues of $3.4 billion for the 12-month period ended September 30, up 13% over the same year-ago period. Operating income for the period was $55 million, up 6% from the year-ago period. The business accounts for 38% of Ashland’s overall revenues. Industry watchers have been speculating for over a year that Ashland would eventually sell its distribution business. In August, Ashland reportedly hired Bank of America (New York) to advise on a sale. Analysts say that Ashland will likely use proceeds from the sale to pay down debt incurred during its acquisition of Hercules. “Longer-term, we would not be surprised to see Ashland make additional specialty chemical acquisitions,” says John Roberts, analyst with Buckingham Research Group (New York).