Dow Chemical Co. agreed to sell its Agrofresh food-packaging unit to an affiliate of Avenue Capital Group, the investment firm run by Marc Lasry.
The deal, which Dow said in a statement Thursday is valued at $860 million, is the latest sale of lower-margin assets by the Midland, Michigan-based company.
Chairman and Chief Executive Officer Andrew Liveris said earlier this month that proceeds from the divestments will exceed $11 billion. A month ago, Dow agreed to sell its chlorine business to Olin Corp. for about $4.2 billion.
Agrofresh was one of the assets Dow announced in October it would sell amid pressure from activist investor Third Point LLC to improve profitability.
Boulevard was set up to acquire businesses and listed in New York in February last year after raising $220.5 million in an initial public offering, the company said in a separate statement. Avenue Capital had about $13 billion of assets under management at the end of March.
Boulevard said it will pay $626 million in cash and 18.4 million of its own shares for Agrofresh, in which Dow will initially hold a stake of about 40 percent and Boulevard investors about 60 percent. Agrofresh will trade on the Nasdaq stock market, Boulevard said.
Boulevard rose 15 percent to $11.59 at the close in New York. Dow Chemical dropped 1.2 percent to $51.