Valvoline Inc. announces completion of final separation from Ashland
Valvoline Inc. announced that Ashland Global Holdings Inc. has completed the previously announced distribution of 170,000,000 shares of common stock of Valvoline as a pro rata dividend on shares of Ashland common stock outstanding at the close of business on the record date of May 5, 2017. Valvoline will join the S&P MidCap 400 Index effective May 16, 2017.
“Now, as both an independent company and an iconic 150-year-old brand, we are well-positioned for growth in the U.S. and around the world,” said Sam Mitchell, Valvoline’s chief executive officer. “Our entire organisation is very excited and focused on the opportunities that lie ahead of us as we build the world’s leading engine and automotive maintenance business.”
Based on the shares of Ashland common stock outstanding as of May 5, 2017, the record date for the distribution, each share of Ashland common stock received 2.745338 shares of Valvoline common stock in the distribution.
Fractional shares of Valvoline common stock were not distributed to Ashland stockholders. Instead, the fractional shares of Valvoline common stock will be aggregated and sold in the open market, with the net proceeds distributed pro rata in the form of cash payments to Ashland stockholders who would otherwise receive Valvoline fractional shares.
The distribution was structured to qualify as a tax-free distribution to Ashland stockholders for U.S. federal income tax purposes. Cash received in lieu of fractional shares will, however, be taxable.
Valvoline Inc. is a leading worldwide producer and distributor of premium-branded automotive, commercial and industrial lubricants, and automotive chemicals. Valvoline ranks as the #2 quick-lube chain by number of stores and #3 passenger car motor oil brand in the do-it-yourself (DIY) market by volume in the United States.
The brand operates and franchises more than 1,070 Valvoline Instant Oil Change(SM) centers in the United States. It also markets Valvoline(TM) lubricants and automotive chemicals; MaxLife(TM) lubricants created for higher-mileage engines, SynPower(TM) synthetic motor oil; and Zerex(TM) antifreeze.
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