COVINGTON, Ky. (AP) - Ashland Inc. said Tuesday it sold its resins business to a unit of private equity company TorQuest Partners for $75 million, as part of the chemical maker's ongoing strategy to divest noncore assets.
Ashland's Hercules Inc. unit agreed to sell Hercules Specialty Resins, its refined wood rosin and natural wood terpenes business. Products from this business are used in the adhesives, construction, beverage, personal care and agriculture markets. As the world's only supplier of wood rosin, the business generated about $85 million in revenue in fiscal 2009.
The transaction, which includes $60 million in cash and a $15 million note, is expected to close within 60 days. Upon closing, the independent company will operate under the name Pinova. All 200 employees will transfer with the sale.
Shares of Ashland fell 26 cents to close at $39.67.