- Proposed transaction aligns with the Company's best-owner
mindset
- Proceeds to support the Company's Decarbonize & Grow and
Transform the Waste strategies
MIDLAND,
Mich., May 2, 2024 /PRNewswire/ --
Dow (NYSE: DOW) announced today that it has signed an
agreement to sell its flexible packaging laminating adhesives
business, within Dow's Packaging & Specialty Plastics segment,
to Arkema, a leader in specialty materials.
This transaction enables the Company to further increase its
focus on core, high-value downstream businesses. The proceeds of
this transaction will support Dow's capital allocation priorities,
including accelerating our growth strategies and delivering
long-term shareholder value.
"In line with Dow's best-owner mindset, we are focused on
proactively managing our asset portfolio to invest in businesses
with competitive positions in attractive markets," said
Jim Fitterling, Dow chair and CEO.
"Proceeds will help us advance our long-term Decarbonize & Grow
and Transform the Waste strategies designed to capture more than
$3 billion in annual earnings growth
by 2030."
About the Transaction
Five manufacturing sites in
Italy, the United States and Mexico will transfer to Arkema and include
Solvent-Based Laminating Adhesives, Solventless Laminating
Adhesives, and Heat Seal Coatings product families.
The transaction value is $150
million or approximately 10 times forecasted 2024 EBITDA.
The transaction is expected to close by the end of 2024, subject to
regulatory approval.
Dow will retain its water-based laminating adhesives and acrylic
adhesives businesses in Packaging and Specialty Plastics, as well
as adhesive solutions in Dow Consumer Solutions and
MobilityScience™, which align with the Company's market growth
strategies.
Dow and Arkema are committed to delivering a seamless transition
for all stakeholders.
About Dow
Dow (NYSE: DOW) is one of the world's
leading materials science companies, serving customers in
high-growth markets such as packaging, infrastructure, mobility and
consumer applications. Our global breadth, asset integration
and scale, focused innovation, leading business positions and
commitment to sustainability enable us to achieve profitable growth
and help deliver a sustainable future. We operate manufacturing
sites in 31 countries and employ
approximately 35,900 people. Dow delivered sales of
approximately $45 billion in 2023. References to Dow or
the Company mean Dow Inc. and its subsidiaries. Learn more about us
and our ambition to be the most innovative, customer-centric,
inclusive and sustainable materials science company in the world by
visiting www.dow.com.
For further information, please contact:
Mary Fournier
+1
989-636-7475
mkfournier@dow.com
X: https://twitter.com/DowNewsroom
Facebook: https://www.facebook.com/dow/
LinkedIn: http://www.linkedin.com/company/dow-chemical
Instagram: http://instagram.com/dow_official
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SOURCE The Dow Chemical Company