The Dow Chemical Co.'s (DOW: Quote) global Polypropylene Licensing & Catalysts business would be divested to W. R. Grace & Co. (GRA: Quote) for $500 million. Dow expects a gain on this sale and net proceeds would be used for the firm's main priorities of remunerating shareholders, debt reduction and funding growth. The transaction may close by the year end.
The sale includes Dow's polypropylene catalysts manufacturing facility at Norco, Louisiana, and customer contracts, licenses, intellectual property and inventory. Dow's UNIPOL licensing and catalysts systems business offers UNIPOL Polypropylene Process Technology, including the advanced process control UNIPOL UNIPPAC Process Control software, SHAC Catalysts Systems, and 6th Generation non-phthalate CONSISTA Catalysts Systems.
As part of this transaction, around 90 employees worldwide are expected to transition employment status to W. R Grace & Co. Pursuant to the purchase agreement, W. R. Grace & Co. would honor customer, licensing and supplier contracts and related agreements.
Dow had earlier planned to sell this unit on March 14, 2013, as part of the company's ongoing commitment to proactive portfolio management and intend to divest around $1.5 billion in assets by mid to late 2014.
by RTT Staff Writer
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