Ashland Inc. on Tuesday filed to reorganize as a public holding company and separate its Valvoline business, key steps in Ashland's previously announced plans to split in two by year's end.
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The proposed reorganization, subject to shareholders' approval, would move the legal headquarters of the holding company, Ashland Global Holdings Inc., to Delaware. Ashland is currently based in Kentucky.
Meanwhile, Valvoline Inc., which would include the engine and automotive maintenance business based on the Valvoline lubricant brand, on Tuesday filed initial documents for an initial public offering. The resulting company will list on the New York Stock Exchange under the ticker symbol VVV.
The preliminary filing indicates Valvoline would raise up to $100 million, a figure used to calculate filing fees but that is often changed. Other details weren't provided, such as the amount of shares to be sold.
Ashland, which would retain control of Valvoline following the planned spinoff, said Valvoline would sell up to 20% of its stock, with the rest of the stock to be distributed to Ashland shareholders in 2017.
For the year ended Sept. 30, 2015, Valvoline reported profit of $196 million on $2 billion in sales, compared with $173 million in profit and $2.04 billion in sales a year earlier.
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Valvoline, the first trademarked motor oil in the U.S., traces its roots to 1866.