Ashland Inc. to transfer a portion of its North American middle market commercial assets within its Water Technologies business to Rochester Midland Corporation
Ashland Inc. has announced that its subsidiary, Hercules Incorporated, conducting business as Ashland Water Technologies, has entered into a definitive agreement to transfer a portion of its middle market commercial business assets to Rochester Midland Corporation (RMC). The business to be transferred includes roughly 5,000 customer locations, with total annualized revenues of approximately $15 million. Financial terms of the transaction were not disclosed.
Under the agreement, RMC will have the right to make and sell Ashland water treatment products into the North American commercial market. Going forward, Ashland and RMC will be working together to provide high-quality, innovative products and services to this segment.
"The transfer of this portion of our North America commercial business to Rochester Midland is consistent with our decision to focus more on heavy industrial markets, while maintaining our long-standing commitments to our commercial customers," said Paul Raymond, president, Water Technologies. "We believe Rochester Midland is well positioned to serve these customers and grow this business to realize a greater return for both companies, and we look forward to working with them."
"We look forward to a long-term relationship with Ashland Water Technologies in multiple areas of mutual interest in our markets and geographies," added Harlan Calkins, Rochester Midland chief executive officer.
The transaction is expected to close by early May, subject to fulfillment of certain conditions. The parties have agreed to work together to ensure a seamless transition with no disruption in customer service.
Approximately 70 employees who currently work in the business are being transferred. RMC has committed to offering jobs to all of these employees.