Ashland said it has reached a "definitive agreement" to sell its Port Neches, Texas-based elastomers business to Lion Copolymer for an undisclosed sum.

The deal is expected to close by the end of the year.

Ashland acquired the elastomers activities, which primarily supply the North American replacement tire market, with its takeover of International Specialty Products in August 2011. The business accounted for around 17% of the Ashland Performance Materials segment's $1.6 billion in sales for fiscal 2014 (Jun. 30).

The decision to sell fits the Wilmington, Delaware-based company's "well-established strategy of divesting non-core assets and reinvesting in higher-margin, specialty chemical businesses where we see attractive growth opportunities," said CEO James J. O'Brien. "We are pleased with the value we received for the business and believe this transaction represents a good strategic fit for Lion," O'Brien added.

Jesse Zeringue, executive vice-president of Lion Copolymer Holdings, said the size of the facility in Port Neches, its access to feedstock and excellent storage capacity, combined with specialty products such as hot styrene-butadiene rubber polymers and high styrene polymers, provide his company with "an excellent growth opportunity."