Dow Divests Styron Business
Zacks Equity Research announced that Dow Chemical Company has recently announced the divestiture of the Styron business to a private equity firm, Bain Capital, for a total of $1.63 billion. As a part of the sale agreement, Dow Chemical has an option to purchase 15 percent of the equity of Styron. The transaction, which is expected to close in August 2010, also includes several long-term supply and purchase agreements for Dow’s downstream businesses. The Styron businesses were part of the Basic Plastics and Performance Products segments including products like Styrenics - Polystyrene (PS), acrylonitrile butadiene styrene (ABS), styrene acrylonitrile (SAN) and expandable polystyrene (EPS), Emulsion Polymers (paper and carpet latex), Polycarbonate (PC) and Compounds & Blends. The business also includes Synthetic Rubber and Automotive Plastics including PULSE™ engineering resins, MAGNUM™ acrylonitrile butadiene styrene, INSPiRE™ performance polymers and VELVEX™ reinforced elastomer.