Dow Exits DowAksa JV, Stays Course On 'Best-Owner' Strategy

Dow Inc. DOW disclosed the signing of a sale and purchase agreement to divest its 50% stake in DowAksa Advanced Composites Holdings BV to its joint venture partner, Aksa Akrilik Kimya Sanayii A.Ş, for about $125 million.

The proceeds imply an enterprise value of around 10 times the projected operating EBITDA for 2025 after factoring in debt.

With this transaction, Aksa will become the sole owner of DowAksa.

Also Read: Dow Downgraded: Analyst Blames ‘Perfect Storm’ Of Weak Macro, High Costs, Trade Barriers

Dow's decision to exit the joint venture, established in 2012, aligns with its "best-owner mindset" strategy, which emphasizes concentrating on core, high-value downstream operations.

The proceeds from the sale will contribute to the company's balanced approach to capital allocation.

The transaction is anticipated to close in the third quarter of 2025, pending standard regulatory approvals and closing conditions.

In April, the company reported that first-quarter 2025 sales declined 3% year over year to $10.431 billion. It beat the consensus of $10.24 billion, and adjusted EPS came in at 2 cents, beating the consensus estimate of a 1 cent loss.

Investors can gain exposure to the stock via Amplify ETF Trust Amplify Natural Resources Dividend Income ETF NDIV and Invesco S&P 500 High Dividend Low Volatility ETF SPHD.

Price Action: DOW shares are down 0.14% at $27.70 premarket at the last check on Monday.

Read Next:

• Analyst Upgrades Dow, Calls Capex Cut And Asset Sales Positive