11 October 2013 13:48 [Source: ICIS news]
LONDON (ICIS)--Dow Chemical has agreed to sell its polypropylene (PP) licensing and catalyst business to fellow US company WR Grace for $500m (€370m), the producer said on Friday.
The transaction includes Dow’s PP catalysts manufacturing facility at Norco, Louisiana, along with customer contracts, licenses, intellectual property and inventory. Around 90 employees are expected to cross over to WR Grace through the sale, with the transaction expected to close by the end of 2013.
Dow CEO Andrew Liveris said that the business was no longer of core strategic value, and that the divestment is part of a strategy of intensifying focus on key sectors.
“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,” he said.
The company announced intentions to divest the business in March as part of a drive to divest $1.5bn-worth of assets by mid-to-late 2014.
As part of the deal, WR Grace will honour outstanding customer, licensing and supplier contracts, Dow added.
($1 = €0.74)
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