The Dow Chemical Company DOW announced today that it has signed a
definitive agreement under which Dow's global Polypropylene Licensing &
Catalysts business will be divested to W. R. Grace & Co. for a sale price of
$500 million. Dow expects to report a gain on this divestment and net proceeds
will be directed toward the Company's main priorities of remunerating
shareholders, debt reduction and funding growth. The transaction is expected
to close by the end of 2013, pending regulatory clearance.
Dow had previously announced its intent to divest this business on March 14,
2013, as part of the Company's ongoing commitment to proactive portfolio
management and plan to divest nearly $1.5 billion in assets by mid to late
2014.
“Today's announcement is another clear demonstration of Dow's rigorous focus
on selectively shifting our portfolio away from assets that are no longer a
strategic fit and optimizing their value,” said Andrew N. Liveris, Dow's
chairman and chief executive officer. “Our accelerated strategy is focused on
narrowing our market participation and preferentially funding our select
growth businesses with strong competitive positions in attractive markets such
as electronics, water, packaging and agricultural sciences. We are planning
further proactive divestments in the next 12 months in our relentless pursuit
of rewarding shareholders.”
The divestiture includes Dow's polypropylene catalysts manufacturing facility
at Norco, Louisiana,^(1) and customer contracts, licenses, intellectual
property and inventory.
Approximately 90 employees globally are expected to transition employment
status to W. R Grace & Co. as part of the transaction. Under terms of the
purchase agreement, W. R. Grace & Co. will honor customer, licensing and
supplier contracts and related agreements. Both companies are committed to
working together for a seamless transition for all stakeholders.
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