Speciality chemicals producer Ashland (Covington, Kentucky / USA; www.ashland.com) has announced plans to split into two independent publicly-traded companies “as soon as practicable, but not less than a year from now.” The split constitutes the final step in its transformation to becoming a speciality chemicals company, Ashland said. In 2011, the company had sold its distribution business to TPG Capital (Fort Worth, Texas / USA; www.tpg.com) affiliate Nexeo Solutions – see Plasteurope.com of 05.04.2011.

The “new” Ashland will focus on speciality chemicals and comprise the activities currently carried out by the company’s chemicals arm, including its Specialty Ingredients and Performance Materials businesses. In the 12 months that ended on 30 June 2015, these units posted sales of about USD 3.6 bn. New Ashland will be headed by chairman William Wulfsohn and CEO Luis Fernandez-Moreno, currently senior vice president. The other company will comprise Ashland’s Valvoline business, and will become an industry leader in engine and automotive maintenance, the group said. The Valvoline business posted sales of USD 2 bn in the year ended 30 June.

“We believe that separating into two industry-leading public companies – one focused on speciality chemicals and the other focused on high-performance lubricants – will generate significant value for shareholders by enabling each company to focus on its specific business and strategic priorities,” Wulfsohn explained the rationale behind the decision. Ashland said it would start the separation process – which still has to meet the relevant approvals – while it finalises the transaction structure.