Dow on track with divestures; sale of film and sodium borohydride units to gross US$225 mn

In line with its strategy to continue to offload less profitable businesses, US chemicals firm Dow Chemical is selling a sodium borohydride unit and an Ohio polyolefins factory for combined proceeds of about US$225 million.

Vertellus Specialty Materials will buy Dow’s sodium borohydride unit, a chemical used in purification and the removal of colour and odour from organic chemicals. Midland, Michigan-based Dow said the divestiture of the unit includes a manufacturing facility located in Elma, Washington, the associated business, inventory, customer contracts and lists, process technology, business know-how and certain intellectual property. Approximately 75 employees globally are expected to transition employment status to Vertellus as part of the transaction. Under the terms of the purchase agreement, Vertellus will honour customer and supplier contracts and related agreements.

Valfilm North America, a subsidiary of Valgroup Packaging Solutions, will acquire the Findlay plant, which makes polyolefin films. The sale includes assets and technology that produce a wide-variety of polyolefin films. In September 2014, Dow decided to close the facility at the end of January 2015, impacting approximately 70 employees. Valfilm intends to restart the facility in February 2015. The transaction is dependent on the final approval for all incentives by the State of Ohio.

Both transactions are expected to close in the first quarter of 2015 pending regulatory approvals. Both transactions are part of Dow’s on going drive to deliver US$7 billion-US$8.5 billion in gross proceeds by mid-2016.

Chairman/CEO Andrew Liveris said in the statement that Dow is moving away from businesses that are “no longer a strategic fit.”

Last month, Dow said it would its Angus Chemical Co. unit for US$1.22 billion.


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