Valvoline Brand For Sale

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Ashland looking to sell Valvoline division- NY Post Fri Apr 24, 2009 11:25am BST April 24 (Reuters) - U.S. chemical maker Ashland Inc (ASH.N: Quote, Profile, Research) is looking for buyers for its Valvoline motor-oil division, which could fetch as much as $1 billion, the New York Post said citing sources familiar with the matter. The first round of bidding took place within the past several days. Prestone and several private-equity firms each made it to the second round, a source told the paper. Ashland would like to transfer some of its debt to Valvoline as part of the sale, making it easier for private-equity firms to finance the deal, the paper said, citing a source. An Ashland spokesman declined to comment to the paper on the sale. Ashland could not be immediately reached for comment by Reuters. (Reporting by Ajay Kamalakaran in Bangalore; Editing by Derek Caney)
 
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626
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Missouri
Good grief...I understand why some people no longer have brand loyalty anymore...its just a name. such is the case with any brand name I suppose...LOL
 
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Illinois
Maybe they are unloading Valvoline as a legal maneuver. Is there anything in the air about a lawsuit from you know who?
 
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Retired | Wausau, WI
I would highly doubt that. About 5-6 years ago, Mobil tried to buy the Valvoline brand from Ashland but it was not for sale then. This will be interesting to see who buys it.
 

Drew2000

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Looks like Ashland is carrying a lot of debt...Hope whoever -may- buy the company keeps the quality. The Synpower line is a very good oil. NY POST SLICK MOVE: ASHLAND HOPES TO DUMP VALVOLINE By JOSH KOSMAN April 24, 2009 -- Chemical company Ashland, looking to lubricate its debt-laden balance sheet, has started shopping its Valvoline motor-oil division, which could fetch as much as $1 billion, sources familiar with the matter told The Post. According to one source, the first round of bids came in within the past several days and among those that have made it through to the second round are Prestone and several private-equity firms bidding individually. An Ashland spokesman declined to comment on the sale. The move to sell Valvoline is certain to raise some eyebrows, as the business is a top seller in the auto-lubricant sector and a big name in the auto-racing circuit. It also accounts for 19 percent of Ashland's overall revenue. However, the company, whose other businesses include water and paper technologies, is struggling under a heavy debt load and trying to avoid violating the terms of lending agreements with banks, which last year helped the company finance its $3.3 billion acquisition of chemicals company Hercules. Indeed, CEO Jim O'Brien in January hinted that the company might have to consider unloading some of its bigger assets as he looks to maintain the debt-to-cash flow ratios specified by the terms of the Hercules-related loans, noting that it was a priority "to meet our covenants and protect the company. So we will do whatever is necessary to achieve those two outcomes." For Ashland, the timing might be right for a sale of the Valvoline business, as lower oil prices have improved margins for the sector. To lead the auction, Ashland has hired Banc of America Securities. A source said that Ashland wants to transfer some of its debt to Valvoline as part of the sale, which would make it easier for private-equity firms to finance the deal. [email protected]
 
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Ca
My gawd... I hope Mobil doesnt buy them... last thing is we need is less competition and more down-graded products.
 
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So much for the thought that big oil was making obscene profits. This fast drop in oil prices might be the reason for unloading Valvoline. Oil companies put a lot into R&D and extraction and now they can't get any ROI.
 
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Ontario, Canada
 Originally Posted By: wannafbody
So much for the thought that big oil was making obscene profits. This fast drop in oil prices might be the reason for unloading Valvoline. Oil companies put a lot into R&D and extraction and now they can't get any ROI.
I'm sure Shell and Exxon-Mobil are still making "obscene" profits.
 
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 Originally Posted By: OVERK1LL
 Originally Posted By: wannafbody
So much for the thought that big oil was making obscene profits. This fast drop in oil prices might be the reason for unloading Valvoline. Oil companies put a lot into R&D and extraction and now they can't get any ROI.
I'm sure Shell and Exxon-Mobil are still making "obscene" profits.
No one is making obsecene profits right now. Even when E-M was making obscene profits there margin was around 15%-less than Coca-Cola.
 
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43,750
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Ontario, Canada
 Originally Posted By: wannafbody
 Originally Posted By: OVERK1LL
 Originally Posted By: wannafbody
So much for the thought that big oil was making obscene profits. This fast drop in oil prices might be the reason for unloading Valvoline. Oil companies put a lot into R&D and extraction and now they can't get any ROI.
I'm sure Shell and Exxon-Mobil are still making "obscene" profits.
No one is making obsecene profits right now. Even when E-M was making obscene profits there margin was around 15%-less than Coca-Cola.
XOM's current profit margin is 9.84%. They made 44 Billion last year in profit. Even with a decline in the market, they are still making money. Just not as much of it from what I've read.
 
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895
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PA
 Originally Posted By: OVERK1LL
 Originally Posted By: wannafbody
 Originally Posted By: OVERK1LL
 Originally Posted By: wannafbody
So much for the thought that big oil was making obscene profits. This fast drop in oil prices might be the reason for unloading Valvoline. Oil companies put a lot into R&D and extraction and now they can't get any ROI.
I'm sure Shell and Exxon-Mobil are still making "obscene" profits.
No one is making obsecene profits right now. Even when E-M was making obscene profits there margin was around 15%-less than Coca-Cola.
XOM's current profit margin is 9.84%. They made 44 Billion last year in profit. Even with a decline in the market, they are still making money. Just not as much of it from what I've read.
Compare that 10% profit margin to other sectors such as energy, medical and pharmaceuticals. Take for instance my conversation with a guy who works at a fuel terminal. He stated that they mark up the product by 10%. When the product cost $1 they made 10cents profit. When the product cost them $2 they made 20cents profit. The claim was that they were gouging consumers with double the profits yet the margin remained the same. Take for instance the pipe mill. When oil profits were high the place was booked for 3-6 months ahead of production. Now that oil has hit bottom they shut the pipe mill down for 2 months since oil drilling has dried up.
 
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Messages
43,750
Location
Ontario, Canada
 Originally Posted By: wannafbody
 Originally Posted By: OVERK1LL
 Originally Posted By: wannafbody
 Originally Posted By: OVERK1LL
 Originally Posted By: wannafbody
So much for the thought that big oil was making obscene profits. This fast drop in oil prices might be the reason for unloading Valvoline. Oil companies put a lot into R&D and extraction and now they can't get any ROI.
I'm sure Shell and Exxon-Mobil are still making "obscene" profits.
No one is making obsecene profits right now. Even when E-M was making obscene profits there margin was around 15%-less than Coca-Cola.
XOM's current profit margin is 9.84%. They made 44 Billion last year in profit. Even with a decline in the market, they are still making money. Just not as much of it from what I've read.
Compare that 10% profit margin to other sectors such as energy, medical and pharmaceuticals. Take for instance my conversation with a guy who works at a fuel terminal. He stated that they mark up the product by 10%. When the product cost $1 they made 10cents profit. When the product cost them $2 they made 20cents profit. The claim was that they were gouging consumers with double the profits yet the margin remained the same. Take for instance the pipe mill. When oil profits were high the place was booked for 3-6 months ahead of production. Now that oil has hit bottom they shut the pipe mill down for 2 months since oil drilling has dried up.
For sure. It is just that Exxon-Mobil has consistently made record profits and even in this market, though they obviously will not come anywhere close to the 44 Billion they made last year, they will still make a massive amount of money. I think about it like this: Exxon-Mobil's PROFIT from last year was more than the Government has given both GM and Chrysler in the automotive bailout. That's a LOT of money.
 
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