Dow Divests Global Polypropylene Licensing & Catalysts Business

  Dow Divests Global Polypropylene Licensing & Catalysts Business

 Driving Divestment Agenda of More than $1.5 Billion Through Focused Actions

Business Wire

MIDLAND, Mich. -- October 11, 2013

The Dow Chemical Company (NYSE: DOW) announced today that it has signed a
definitive agreement under which Dow’s global Polypropylene Licensing &
Catalysts business will be divested to W. R. Grace & Co. for a sale price of
$500 million. Dow expects to report a gain on this divestment and net proceeds
will be directed toward the Company’s main priorities of remunerating
shareholders, debt reduction and funding growth. 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 ongoing commitment to proactive portfolio
management and plan to divest nearly $1.5 billion in assets by mid to late
2014.

“Today’s announcement is another clear demonstration of Dow’s 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
chairman and chief executive officer. “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. We are planning
further proactive divestments in the next 12 months in our relentless pursuit
of rewarding shareholders.”

The divestiture includes Dow’s polypropylene catalysts manufacturing facility
at Norco, Louisiana,^(1) and customer contracts, licenses, intellectual
property and inventory.

Approximately 90 employees globally are expected to transition employment
status to W. R Grace & Co. as part of the transaction. Under terms of the
purchase agreement, W. R. Grace & Co. will honor customer, licensing and
supplier contracts and related agreements. Both companies are committed to
working together for a seamless transition for all stakeholders.

About Dow

Dow (NYSE: DOW) combines the power of science and technology to passionately
innovate what is essential to human progress. The Company connects chemistry
and innovation with the principles of sustainability to help address many of
the world's most challenging problems such as the need for clean water,
renewable energy generation and conservation, and increasing agricultural
productivity. Dow's diversified industry-leading portfolio of specialty
chemical, advanced materials, agrosciences and plastics businesses delivers a
broad range of technology-based products and solutions to customers in
approximately 160countries and in high growth sectors such as electronics,
water, energy, coatings and agriculture. In 2012, Dow had annual sales of
approximately $57billion and employed approximately 54,000people worldwide.
The Company's more than 5,000 products are manufactured at 188sites in
36countries across the globe. References to "Dow" or the "Company" mean The
Dow Chemical Company and its consolidated subsidiaries unless otherwise
expressly noted. More information about Dow can be found at www.dow.com.

^1The Norco assets are owned by Union Carbide Corporation, a wholly-owned
subsidiary of The Dow Chemical Company.

^®TM Trademark of The Dow Chemical Company (“Dow”) or an affiliated company of
Dow

Contact:

For editorial information:
The Dow Chemical Company
Louise Adhikari, +1 (989) 638-9889
ladhikari@dow.com
or
The Dow Chemical Company
Rebecca Bentley, +1 (989) 638-8568
rmbentley@dow.com
 
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