Dow Chemical expects to have buyers for the Angus Chemical Co., sodium borohydride, and AgroFresh businesses by the end of the year, confirming earlier reports that it would divest those businesses. Dow says it is on track to meet its goal of divesting $4.5–6.0 billion in nonstrategic businesses by 2015.
The company has already sold a substantial portion of its North America railcar fleet for nearly $450 million in cash in favor of leasing.
Dow says it continues to make progress on plans to carve out its US Gulf coast chlor-alkali/chlor-vinyl, global chlorinated organics, and epoxy businesses, which collectively are expected to generate Ebitda in excess of $500 million annually. “The carve-out is receiving strong interest from the market, and firm indications of interest are expected before year end,” says the company, which expects to obtain signed agreements early in the second quarter of 2015.
During the company’s second-quarter earnings call, Dow announced plans to simplify the structure and focus of its major joint ventures and better align them with its strategy. Today the company presented the first example, a definitive agreement with ExxonMobil Chemical to restructure the ownership of Univation Technologies, which licenses the Unipol polyethylene process technology and develops, manufactures, and sells the associated catalysts. Now a 50-50 jv, Univation will become a wholly owned of Dow by the end of the year.
By Clay Boswell