Ashland completes
acquisition of Oil Can Henry's, marking Valvoline's expansion into
several Pacific Northwest quick-lube markets
LEXINGTON, Ky. - Ashland Inc.
(NYSE: ASH) today announced it has completed the previously
announced acquisition of OCH International, Inc. (Oil Can Henry's),
which operates and franchises a total of 89 quick-lube stores in
six states. Financial terms were not disclosed.
Oil Can Henry's, based in
Portland, Oregon, is the 14th largest
quick-lube network in the United States, servicing approximately 1
million vehicles annually. Founded in 1978, it employs
approximately 435 people and currently operates 47 company-owned
stores and 42 franchise locations in Oregon (38 sites), Washington
(29), California (11), Arizona (five), Idaho (three) and Colorado
(three).
The addition of Oil Can Henry's
will complement the existing Valvoline Instant Oil
ChangeSM network of
956 company-owned and franchise stores, while also marking
Valvoline's entry into the quick-lube space in several new
markets.
"This is a great fit for us, as it
will expand Valvoline's geographic footprint into an attractive
growth market and accelerate our store growth this year," said Sam
Mitchell, Ashland senior vice president and Valvoline president.
"The addition of the Oil Can Henry's network will increase our
total store count by approximately 10 percent. In addition, the
acquisition highlights the strength of our quick-lube model. We
will be able to leverage the unique benefit gained from our
vertical integration by introducing industry-leading
Valvoline-branded lubricants into the Pacific Northwest quick-lube
market. It also enhances our ability to own and operate stores and
support franchisees in a new market for Valvoline. We look forward
to working with the team at Oil Can Henry's to grow the business
and build on their success."
"The acquisition of Oil Can
Henry's is consistent with Valvoline's strategy of investing in
higher-return opportunities within its core lubricants business,"
added William A. Wulfsohn, Ashland chairman and chief executive
officer. "We believe the continued expansion of the quick-lubes
store footprint, via both organic growth as well as acquisitions,
is among the most attractive investments for Valvoline."
For a list of all Valvoline
Instant Oil Change service center locations and hours of
operations, visit vioc.com. For a list of all Oil Can Henry's
locations and hours, visit oilcanhenrys.com.
About
Valvoline(TM)
Valvoline is a leading worldwide producer and distributor of
premium-branded automotive, commercial and industrial lubricants,
and automotive chemicals. It ranks as the #2 quick-lube chain and
#3 passenger car motor oil brand in the United States. The brand
operates and franchises nearly 1,050 Valvoline Instant Oil
ChangeSM centers in
the United States. It also markets ValvolineTM
lubricants and automotive chemicals; MaxLifeTM
lubricants created for higher-mileage engines, SynPowerTM synthetic
motor oil; and ZerexTM antifreeze.
Key customers include: retail auto parts stores and mass
merchandisers who sell to consumers; installers, such as car
dealers, repair shops and quick lubes; commercial fleets; and
distributors.
About Ashland
Ashland Inc. (NYSE: ASH) is a global leader in providing specialty
chemical solutions to customers in a wide range of consumer and
industrial markets, including adhesives, architectural coatings,
automotive, construction, energy, food and beverage, personal care
and pharmaceutical. Through our three business units - Ashland
Specialty Ingredients, Ashland Performance Materials and Valvoline
- we use good chemistry to make great things happen for customers
in more than 100 countries. Visit ashland.com to learn more.
- 0 -
C-ASH
Forward-Looking Statements
This news release contains
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Ashland has identified
some of these forward-looking statements with words such as
"anticipates," "believes," "expects," "estimates," "is likely,"
"predicts," "projects," "forecasts," "may," "will," "should" and
"intends" and the negative of these words or other comparable
terminology. In addition, Ashland may from time to time make
forward-looking statements in its annual report, quarterly reports
and other filings with the Securities and Exchange Commission
(SEC), news releases and other written and oral communications.
These forward-looking statements are based on Ashland's
expectations and assumptions, as of the date such statements are
made, regarding Ashland's future operating performance and
financial condition, including the proposed separation of its
specialty chemicals and Valvoline businesses, the expected
timetable for completing the separation, the future financial and
operating performance of each company, strategic and competitive
advantages of each company, the leadership of each company, and
future opportunities for each company, as well as the economy and
other future events or circumstances. Ashland's expectations and
assumptions include, without limitation, internal forecasts and
analyses of current and future market conditions and trends,
management plans and strategies, operating efficiencies and
economic conditions (such as prices, supply and demand, cost of raw
materials, and the ability to recover raw-material cost increases
through price increases), and risks and uncertainties associated
with the following: the possibility that the proposed separation
will not be consummated within the anticipated time period or at
all, including as the result of regulatory market or other factors;
the potential for disruption to Ashland's business in connection
with the proposed separation; the potential that the new Ashland
and Valvoline do not realize all of the expected benefits of the
separation, Ashland's substantial indebtedness (including the
possibility that such indebtedness and related restrictive
covenants may adversely affect Ashland's future cash flows, results
of operations, financial condition and its ability to repay debt);
the impact of acquisitions and/or divestitures Ashland has made or
may make (including the possibility that Ashland may not realize
the anticipated benefits from such transactions); the global
restructuring program (including the possibility that Ashland may
not realize the anticipated revenue and earnings growth, cost
reductions and other expected benefits from the program); Ashland's
ability to generate sufficient cash to finance its stock repurchase
plans; severe weather, natural disasters, and legal proceedings and
claims (including environmental and asbestos matters). Various
risks and uncertainties may cause actual results to differ
materially from those stated, projected or implied by any
forward-looking statements, including, without limitation, risks
and uncertainties affecting Ashland that are described in its most
recent Form 10-K (including Item 1A Risk Factors) filed with the
SEC, which is available on Ashland's website at
http://investor.ashland.com or on the SEC's website at
http://www.sec.gov. Ashland believes its expectations and
assumptions are reasonable, but there can be no assurance that the
expectations reflected herein will be achieved. Unless legally
required, Ashland undertakes no obligation to update any
forward-looking statements made in this news release whether as
result of new information, future event or otherwise.
FOR FURTHER
INFORMATION:
Ashland Media Relations:
Gary
Rhodes
+1 (859)
815-3047
glrhodes@ashland.com
Ashland Investor
Relations:
Seth A.
Mrozek
+1 (859) 815-3527
samrozek@ashland.com
Ashland Inc. completes acquisition
of Oil Can Henry's stores
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Ashland Inc. via Globenewswire
HUG#1982885
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