Dow: Sale of Styron Division
The Dow Chemical Company and Bain Capital Partners, a leading global private equity firm, have closed the sale of Dow’s Styron Division to an affiliate of Bain Capital on June 17, 2010. Dow has elected to retain a 7.5 % equity position in Styron, which is now a privately held, global materials company. Also included in the transaction are several long-term supply, service and purchase agreements between Dow and Styron that will generate substantial additional value for both companies.
According to Dow, with the close of this transaction, the company has exceeded its goal of divesting USD 5 billion of non-strategic assets. These divestitures have enabled Dow to both reduce debt and liberate capital and resources for the company’s higher growth, higher margin businesses.
Businesses and products included in this transaction are: Styrenics – Polystyrene (PS), acrylonitrile butadiene styrene (ABS), styrene acrylonitrile (SAN) and expandable polystyrene (EPS); Emulsion Polymers (paper and carpet latex); Polycarbonate (PC) and Compounds & Blends; Synthetic Rubber; Automotive Plastics; and some styrene monomer assets.
Styron is positioned as a leading materials company with global reach and a unique product portfolio, bringing together plastics, rubber and latex businesses that share feedstocks, operations, customers and end users.
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