The purchase price is approximately US$979 million in cash, including an adjustment for estimated closing net working capital, plus the assumption of certain specified liabilities.

With approximately 2000 employees, the Ashland Distribution business, which includes materials for the composites industry, generated revenues of $3.4 billion in fiscal year 2010.

“This transaction signifies our sharpened focus as a high-performing speciality chemicals company," notes Ashland Chairman and CEO James J. O’Brien. "It also is consistent with our overall goal to return maximum long-term value to our shareholders.”

Effective with the divestiture, approximately 42% of Ashland’s sales are now derived from outside North America, with nearly 20% originating in the high growth regions of Latin America and Asia Pacific.

Ashland Inc (NYSE: ASH), headquartered in Covington, Kentucky, USA,  now operates through four commercial units – Ashland Aqualon Functional Ingredients; Ashland Hercules Water Technologies; Ashland Performance Materials (which includes the company's composites products and services); and Ashland Consumer Markets (Valvoline).

Nexeo – a new composites distribution company

With the acquisition of Ashland Distribution by TPG, Nexeo Solutions has began operations as an independent chemicals, plastics, composites and environmental services distribution company.

"Our goal is to be the preferred global distribution partner for suppliers and customers worldwide," says David Bradley, CEO, Nexeo Solutions. "To achieve that goal, we'll endeavour to do more than just deliver great products from the most trusted producers in the world. We'll also work to add value through product customisation, technical expertise, best-in-class logistics support and a continued commitment to safety and compliance."

Nexeo Solutions is a privately owned and operated company with approximately 2000 employees across North America, Europe and Asia.