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
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
Both companies say they are committed to working together for a
seamless transition for all stakeholders.