The Dow Chemical Company announced that it has signed definitive agreements to sell its global Sodium Borohydride business to Vertellus Specialty Materials LLC (Vertellus) and its polyolefin films plant in Findlay, Ohio to Valfilm North America, Inc. (Valfilm), a wholly-owned subsidiary of Valgroup Packaging Solutions. Both transactions are expected to close in the first quarter of 2015 pending regulatory approvals. Combined proceeds from the transactions total approximately $225 million.
Dow had previously announced its intent to divest its Sodium Borohydride business on Oct. 2, 2014, as part of the Company's ongoing focus to maximize value across its integrated portfolio by reducing exposure to non-strategic businesses and assets. Both transactions are part of Dow's ongoing drive to deliver $7 billion to 8.5 billion in gross proceeds by mid-2016.
"We continue to demonstrate our market-driven focus by selectively shifting our portfolio away from businesses that - while valuable - are no longer a strategic fit," said Andrew N. Liveris, Dow's chairman and chief executive officer. "By narrowing our market participation and preferentially funding those businesses in which we have strong competitive positions in attractive markets, we continue to increase value that can be redirected for more strategic uses, such as funding targeted growth, reducing debt and rewarding shareholders."
The divestiture of Sodium Borohydride includes a manufacturing facility located in Elma, Washington, the associated business, inventory, customer contracts and lists, process technology, business know-how and certain intellectual property. Approximately 75 employees globally are expected to transition employment status to Vertellus as part of the transaction. Under the terms of the purchase agreement, Vertellus will honor customer and supplier contracts and related agreements.
The sale of the Findlay plant includes assets and technology that produce a wide-variety of polyolefin films. In September 2014, Dow decided to close the facility at the end of January 2015, impacting approximately 70 employees. Valfilm intends to restart the facility in February 2015. The transaction is dependent on the final approval for all incentives by the State of Ohio.
Dow continuous portfolio shift