Shareholders of Ethyl Corp. last week approved a restructuring plan that calls for the companys Petroleum Additives business to be renamed Afton Chemical Corp. By July 1, Afton will become one of two subsidiaries belonging to a new holding company, NewMarket Corp.
Ethyl, which is based in Richmond, Va., has two main businesses: Petroleum Additives; and its tetraethyl lead operations, which will retain the Ethyl name. The companys board of directors proposed creation of a holding company in March, saying it would allow better management of the businesses and would better position them for future acquisitions or joint ventures.
We believe that the creation of NewMarket brings clarity to our operating structure and will establish a foundation for our future evolution, President and Chief Executive Officer Thomas E. Gottwald said after holders of a majority of Ethyl stock shares voted in favor of the plan at the companys annual meeting Thursday. We believe the holding company will facilitate acquisitions and joint ventures, diversification into new markets and improve financing options.