Dow Chemical has completed a previously announced deal that makes it the 100% owner of Dow Corning’s silicones business.
Corning will receive roughly $4.8 billion in cash for its share in the silicones business and maintains its approximately 40% ownership in polysilicon producer Hemlock Semiconductor Group, which was majority owned by Dow Corning.
Dow Corning’s silicones business had 2015 revenues of more than $4.5 billion and is expected to generate more than $1 billion of annual Ebitda for Dow after an expected $400-million in cost savings and growth synergies are achieved. “As an owner of Dow Corning for more than seven decades, our deep understanding of common and adjacent markets we serve will enable us to go narrower and deeper into high-growth businesses where innovation is rewarded with value,” says Andrew Liveris, Dow’s chairman and CEO.
The “highly synergistic transaction” extends participation in its consumer solutions and infrastructure solutions segments, providing integration into Dow’s monomer and polymer value chains, Dow says. It also enables Dow to provide complementary technology offerings in attractive industry segments where Dow already has a strong presence, such as building and construction, consumer care, transportation, packaging, and electronics.
As previously announced, Dow vice chairman and CFO Howard Ungerleider will serve as chairman of Dow Corning in addition to his current responsibilities. Dow v.p. Mauro Gregorio, who leads the Dow Corning integration team for Dow, will serve as CEO of Dow Corning. Andy Tometich, a 27-year Dow Corning veteran, has been named business president of the silicones business. Dow Corning will operate as a wholly owned subsidiary of Dow, and will be headquartered with Dow in Midland, MI.
Hemlock Semiconductor today named Mark Bassett, who currently serves as global v.p. of Dow Chemical’s polyurethanes business, as its chairman and CEO. He replaces Denise Beachy, who has been named commercial director for Europe, Middle East, Africa and India for Dow’s elastomers, and electrical and telecommunications business. Dow and Corning will both maintain their equal equity interests of approximately 40% in Hemlock Semiconductor, and Shin-Etsu will maintain its minority share.
By Robert Westervelt
Source: Chemical Week
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