Dow Sells Global Polypropylene Business to Braskem for $340 Million
According to Business Wire, Dow Chemical Company has signed a definitive agreement under which Dow’s global polypropylene business will be divested to Braskem for a total enterprise value to Dow of $340 million, comprised of $323 million cash purchase price plus other cash and contingency assumptions of $17 million. Dow expects to report a gain on this divestment, and the transaction is expected to close by the end of the third quarter 2011, pending regulatory approval. In addition to this transaction, the two companies will continue to evaluate potential future collaborations on growth opportunities in connection to their strategies. The divestiture includes Dow’s polypropylene manufacturing facilities at Schkopau and Wesseling, Germany, and Freeport and Seadrift, Texas. Also included are inventory, business know-how, certain product and process technology and customer contracts and lists. Approximately 200 employees are expected to transition employment status to Braskem at transaction close.