TPG Capital LP has completed its $979 million purchase of Ashland Distribution, and has renamed the business Nexeo Solutions LLC.
San Francisco-based TPG bought the unit from Ashland Inc. of Dublin, Ohio. Newly named Nexeo ranks as one of North America's largest distributors of resins and chemicals, with about 2,000 employees and 2010 sales of $3.4 billion.
Nexeo will continue to be based in Dublin.
Nexeo CEO David Bradley said in a March 31 news release that the new firm's goal is to be the preferred global distribution partner for suppliers and customers worldwide.
TPG partner Kevin Burns added in the release that his firm has a history of helping former divisions thrive as independent companies, and brings deep experience in chemicals and distribution.
Nexeo generates about 40 percent of its annual sales from plastics. Its resin suppliers include Sabic Innovative Plastics, LyondellBasell Industries AF SCA, BASF Corp., ExxonMobil Chemical Co. and Borealis AG.
The unit operates from 132 warehouses in North America and 14 in Europe, and also operates its own private fleet of trucks, tankers and trailers that includes a total of almost 1,000 vehicles.
The purchase price represents a multiple of more than 10 times annual earnings for the former Ashland unit. The deal first was announced in November and marked TPG's second major move into distribution during 2010. The firm earlier paid $1.3 billion to acquire American Tire Distributors Holdings Inc., the region's largest independent tire distributor.