Ashland Inc.’s stock surged 5.9% in premarket trade Tuesday, after the company announced plans to separate into two independent, publicly-traded companies, one focused on specialty chemicals and the other on high-performance lubricants. The company said the move represents the completion of its transformation from an oil refiner to a chemicals company. Current Chief Executive William Wulfsohn will become CEO of the new Ashland, which will focus on specialty chemicals used in consumer and industrial markets, which generated $3.6 billion in sales for the 12 months ending June 30. Sam Mitchell, the current president of the Valvoline business, will serve as CEO of the new Valvoline, focused on lubricants, which generated sales of $2 billion in the year ending June 30. “We believe that separating into two industry-leading public companies…will generate significant value for shareholders by enabling each company to focus on its specific business and strategic priorities,” Wulfsohn said. The stock has tumbled 17% over the past three months, while the S&P 500 has lost 7.3%.
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