27 July 2011 16:06 [Source: ICIS news]
HOUSTON (ICIS)--US-based Dow Chemical has signed a definitive agreement to sell a polypropylene (PP) business for $340m (€235m), chief executive Andrew Liveris said on Wednesday.
Liveris said the company would sell the business to a strategic buyer. He did not name the company.
The deal amounts to 6.7 times earnings before interest, tax depreciation and amortisation (EBITDA), Liveris said.
"This is yet another step along the line of putting our precious inputs, propylene in this case, into value-add outputs," Liveris said.
"We are taking what we make into our value-add high-end uses like acrylics and epichlorohydrin and proplyene oxide, and we are lowering our buy," Liveris said.
There are still a lot of details around the deal - including the name of the buyer - that Dow would announce later, Liveris said.
Sources in the financial community had said that Dow was trying to sell its PP business and PP catalyst licensing business separately.
Dow’s PP catalyst licensing business includes its UNIPOL, CONSISTA D7000 Donor and SHAC Catalyst process technologies.
($1 = €0.70)
Additional reporting by Joseph Chang
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