Dow Chemical Puts 2 Units On Block, Could Net $1.75 Billion
Dow Chemical said in December it would sell $5 billion in non-core assets by the end of 2015, and raised that amount to $6 billion earlier this summer.
Dow hired Morgan Stanley to sell its Angus Chemical subsidiary, as well as AgroFresh, according to a Reuters report Wednesday citing unnamed sources.
Dow, with annual revenue of $57.08 billion last year, previously said it would sell its epoxy business and some chlorine-related assets.
Dow's Angus unit makes additives for use in paints, cosmetics and life sciences. Angus could be worth more than 10 times its $115 million in earnings before interest, taxes depreciation and amortization, Reuters said.
The AgroFresh unit makes products to protect fresh produce from spoilage and could fetch 10 times its $50 million to $60 million of annual EBITDA, Reuters said.
Dow was reported earlier this month seeing interest from private equity firms in its Sodium Borohydride unit in an auction said to be managed by Valence Group.
Dow Chemical traded recently at $53.67, up one percent.
© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.