Valvoline Expects to Raise $605 Million in IPO
September 12 2016 - 10:10AM
Dow Jones News
Valvoline Inc. said it plans to sell 30 million shares for
between $20 and $23 a share in its initial public offering, raising
roughly $605 million in net proceeds as it spins off from Ashland
Inc. later this year.
Valvoline Inc. includes Ashland's engine and automotive
maintenance business based on the Valvoline lubricant brand.
Ashland will own 85% of the company, but intends to eventually
spin off that stake to its own shareholders. Valvoline said it
intends to take on $980 million in debt and give the proceeds to
Ashland. It will use some of the stock sale to pay down this new
debt.
Last September, Ashland's board approved its plan to separate
into two publicly traded companies, which the company said marked a
final step in its decadelong transition. The Ashland business will
focus on driving growth through higher-margin specialty
chemicals.
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
September 12, 2016 09:55 ET (13:55 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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