Ashland Inc. and Niteo Products, a newly formed affiliate of Highlander Partners, today announced they have reached a definitive agreement under which Niteo will purchase Valvoline’s car care products assets, including manufacturing and distribution facilities in Hernando, Mississippi. The transaction is expected to close within 90 days, subject to certain standard closing conditions. Financial terms were not disclosed.
Car care products, which represented less than four percent of Valvoline’s $2.0 billion in sales for the 12 months ended Dec. 31, 2014, includes the following brands:
‣ Car Brite – Professional automotive detailing products such as cleaners and degreasers sold through the Do-It-For-Me (DIFM) channel
‣ Eagle One – Consumer detailing products such as cleaners and degreasers sold through the Do-It-Yourself (DIY) channel
‣ Pyroil – A full line of automotive maintenance chemicals
Also included in the sale are Valvoline-branded and private-label maintenance chemicals sold into the DIY channel. Approximately 140 employees work in car-care products, including approximately 120 based at the manufacturing and distribution facilities in Mississippi.
“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.
From Ashland Inc.