MOSCOW (MRC) -- Dow Chemical has announced that it signed a definitive agreement under which ANGUS Chemical Co. will be sold to Golden Gate Capital for USD1.215 billion, reported Hydrocarbonprocessing.
The transaction is expected to close during the first quarter of 2015, subject to completion of customary regulatory filings.
Dow had previously announced its intent to divest this business on Oct. 2. The divestiture aligns to Dow’s efforts to achieve its identified target of USD4.5 billion to USD6 billion in proceeds from shedding non-strategic assets and businesses by year-end 2015.
To date, Dow says it has achieved USD2.5 billion in proceeds designed to remunerate shareholders, reduce debt, and fund growth.
"With today’s announcement, Dow continues to demonstrate its rigorous focus on selectively shifting our portfolio away from assets that are no longer a strategic fit and optimizing their value," said Andrew N. Liveris, Dow’s CEO.
The divestiture of ANGUS includes the business headquarters and R&D facility in Buffalo Grove, Illinois; manufacturing facilities located in Sterlington, Louisiana, and Ibbenbueren, Germany; a packaging facility in Niagara Falls, New York; as well as the associated business, inventory, customer contracts, process technology, business know-how and certain intellectual property.
As MRC wrote before, in September 2014, Dow hired investment bankers including Morgan Stanley to sell its Angus Chemical Co. subsidiary in Buffalo Grove, Ill., as well as AgroFresh Inc.
ANGUS is the world's only chemical company dedicated to the manufacture and distribution of nitroalkanes and their derivatives, which are versatile additives and intermediates that help customers to enhance their products’ performance. Industries successfully using ANGUS’ products include paints and coatings, life sciences and biopharma, metalworking, personal care, pharmaceuticals, water treatment, oil & gas and many others.
The Dow Chemical Company is an American multinational chemical corporation. As of 2007, it is the second-largest chemical manufacturer in the world by revenue (after BASF) and as of February 2009, the third-largest chemical company in the world by market capitalization (after BASF and DuPont). Dow is a large producer of plastics, including polystyrene, polyurethane, polyethylene, polypropylene, and synthetic rubber.