Unocal Paint-Solvent Unit to Be Sold for $90 Million

In its latest move to trim and restructure, Los Angeles-based Unocal Corp. has agreed in principle to sell its retail chemical distribution business to competitor Ashland Oil Inc.

The deal, details of which were still being worked out Friday, would transfer up to 21 metropolitan distribution centers as well as several deep-water marine terminals to Ashland at a reported price of more than $90 million.

Unocal spokesman James H. Bray described the move as “part of our continuing strategy to generate greater cash flow, to focus on business areas where we have a better competitive position.”

Added Ashland spokesman Roger Schrum: “This is an extremely competitive business, and it’s service that sets you apart. We think this will help us provide much better service over a lot more of the United States.”

Ashland ranks second and Unocal fourth among distribution companies, according to the industry journal CPI Purchasing. The bulk of the business being sold distributes solvents to the paint and coating industry.

Unocal will retain chemical units that produce fertilizers and such carbon products as the graphite rods in auto batteries.

Both companies said it was too early to tell whether the deal would bring layoffs of Unocal chemical-unit employees.