Ashland has announced that its subsidiary, Hercules Incorporated, closed the sale of its refined wood rosin and natural wood terpenes business, formerly known as Pinova, to a new company formed by TorQuest Partners, a Canadian private equity fund manager. The transaction value was approximately $75 million before taxes, including $60 million in cash and a $15 million promissory note from the buyer.
As part of the transaction, approximately 200 employees and a manufacturing facility in Brunswick, Ga., were transferred to the buyer. The business, which TorQuest will operate under the name Pinova, generated revenues of approximately $85 million in fiscal year 2009.
"Selling this business delivers an attractive return for our shareholders and enables us to better focus our activities and resources on our key specialty chemicals product areas," said James J. O'Brien, Ashland chairman and chief executive officer.
