Dow sells Global Polypropylene Business Braskem $340 million

Dow sells Global Polypropylene Business to Braskem for $340 million

3:07 PM, 28th July 2011
Dow sells Global Polypropylene Business to Braskem for $340 million
Andrew N Liveris, Chairman and CEO, Dow.

 

MIDLAND, US: Dow Chemical Company agreed to sell it’s global Polypropylene business to Braskem for a total enterprise value of $340 million, comprised of $323 million cash purchase price plus other cash and contingency assumptions of $17 million. Enterprise value multiple to Dow is 6.7x EBITDA. Dow expects to report a gain on this divestment and the transaction is expected to close by the end of the third quarter 2011, pending regulatory approval. In addition to this transaction, the two companies will continue to evaluate potential future collaborations on growth opportunities in connection to their strategies.

The divestiture includes Dow’s polypropylene manufacturing facilities at Schkopau and Wesseling, Germany, and Freeport and Seadrift, Texas. Also included are inventory, business know-how, certain product and process technology and customer contracts and lists.

Approximately 200 employees are expected to transition employment status to Braskem at transaction close. Dow’s Polypropylene Licensing & Catalyst business and related catalyst facilities are excluded from the scope of the transaction.

Under terms of the purchase agreement, Braskem will honour customer and supplier contracts and related agreements.

“This divestiture is another strong example of Dow’s strategy to transform our Performance Plastics franchise to focus on downstream, technology-differentiated solutions,” said Andrew N Liveris, Chairman and CEO, Dow.

“This business has delivered historic margins that do not meet our expectations moving forward and is no longer core to Dow’s strategy. We are shifting our Plastics portfolio from a commodity focus to that of a performance focus. This divestment is directly in line with that strategy,” added Liveris. 

© WOC News

 

0 Comments

Login

Your Comments (Up to 2000 characters)
Please respect our community and the integrity of its participants. WOC reserves the right to moderate and approve your comment.

Related News


Insituform Technologies to buy North American business of Fyfe Group

ST LOUIS, US: Insituform Technologies Inc will acquire the North American business of Fyfe Group, LLC for a purchase price of $115.8 million. The comp ...

Read more
Nova signs MoU with Statoil for ethane supply from Marcellus Shale

  CALGARY, CANADA: Nova Chemicals Corporation signed a memorandum of understanding (MoU) with Statoil Marketing and Trading Inc for a long-term ...

Read more
FMC to acquire RheinPerChemie’s European Persulfates business

PHILADELPHIA, US: FMC Corporation will acquire the European persulfates business of RheinPerChemie GmbH from Unionchimica SpA. The acquisition will st ...

Read more
DSM and Nutreco issue joint statement regarding Provimi

HEERLEN, THE NETHERLANDS: DSM and Nutreco have issued a joint statement against recent media speculation, regarding a possible acquisition of Provimi. ...

Read more
Molycorp awards Chlor-Alkali plant contract to KBR

  GREENWOOD VILLAGE, US: Molycorp Inc awarded the engineering, procurement, and construction (EPC) contract by a wholly owned subsidiary to KBR, ...

Read more
Makhteshim Agan launches new formulation plant in India

  TEL AVIV, ISRAEL/HYDERABAD, INDIA: Makhteshim Agan India, part of the Makhteshim Agan Group (MAI) launched a new formulation and packaging pla ...

Read more
www.worldofchemicals.com uses cookies to ensure that we give you the best experience on our website. By using this site, you agree to our Privacy Policy and our Terms of Use. X