Dow Chemical Co. has sold AgroFresh, its post-harvest specialty chemical business, for more than $900 million.
The business was purchased by Boulevard Acquisition Corp., a public investment vehicle formed by Avenue Capital Group, and has been renamed AgroFresh Solutions, Inc. Dow will retain a non-consolidated minority ownership position in AgroFresh Solutions, initially holding approximately 35 percent of its shares, the company said.
AgroFresh provides specialty chemical solutions to preserve and enhance the freshness, quality and value of fresh produce and to maximize the proportion of produce supplied to the market relative to the amount of produce grown. Its flagship product is the SmartFresh Quality System, a freshness protection technology for maintaining the firmness, texture and appearance of fruits during storage and transport.
Thomas Macphee, CEO of AgroFresh Solutions, said: “We are excited to launch AgroFresh Solutions as a stand-alone, publicly listed global specialty chemicals business. We believe our company, the leading post-harvest specialty chemical business, is well positioned to generate strong risk-adjusted returns for our shareholders.
“We expect to continue to grow through strategic expansion of our core franchise, the development of a robust pipeline of high-value solutions that preserve the quality and value of fresh produce, and the pursuit of related, accretive acquisitions.”
As a result of this transaction and the upcoming completion of Dow Chlorine Products’ merger with Olin, Dow has significantly exceeded its previously stated goal of realizing $7 billion to $8.5 billion of divestments. The total now stands at around $12 billion in pre-tax proceeds.