Dow Chemical Co. said on Thursday that it is seeking buyers for three of its businesses as part of plans to streamline its operations.
The chemical group is actively marketing its Angus Chemical Company, Sodium Borohydride and AgroFresh businesses for divestment. Sale agreements are expected to be signed by the end of the year, with completion in early 2015. The transactions would raise a total of more than $2 billion.
This is in line with the company's plans to divest $4.5 billion to $6 billion of non-strategic businesses and assets by 2015. So far, divestitures have raised $1.3 billion and Dow now expects proceeds from the divestiture program to be at the higher end of its forecast range.
The company also confirmed that it has completed the sale of part of its North America rail car fleet for proceeds of almost $450 million, moving to a lease structure instead.
It is also in the process of a planned carve-out of its U.S. Gulf Coast Chlor-Alkali/Chlor-Vinyl, Global Chlorinated Organics and Epoxy businesses, which collectively are expected to generate more than $500 million in annual earnings before interest, taxes depreciation and amortization (EBITDA).
Firm indications of interest are expected before the end of 2014, followed by signed agreements in the second quarter of 2015.
Separately, Dow announced on Thursday that it has signed an agreement with joint venture partner ExxonMobil Chemical Co. to make Univation Technologies, a licensor of polyethylene technology, a wholly owned subsidiary of Dow.
