Dow Chemical has signed a definitive agreement under which its global polypropylene (PP) licensing and catalysts business will be divested to WR Grace & Co. for a sale price of $500 million, officials said on Friday.
The transaction is expected to close by the end of 2013, pending regulatory clearance.
Dow had previously announced its intent to divest this business on March 14, 2013, as part of the company's plan to divest nearly $1.5 billion in assets by mid-to-late 2014.
Todays announcement is another clear demonstration of Dows 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, Dows CEO.
Our accelerated strategy is focused on narrowing our market participation and preferentially funding our select growth businesses with strong competitive positions in attractive markets such as electronics, water, packaging and agricultural sciences," he added. "We are planning further proactive divestments in the next 12 months in our relentless pursuit of rewarding shareholders.
The divestiture includes Dows polypropylene catalysts manufacturing facility at Norco, Louisiana, and customer contracts, licenses, intellectual property and inventory.
Approximately 90 employees globally are expected to transition employment status to WR Grace as part of the transaction. Under terms of the purchase agreement, WR Grace will honor customer, licensing and supplier contracts and related agreements.
Both companies say they are committed to working together for a seamless transition for all stakeholders.