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news.Dow Chemical has announced that it has signed two separate sale agreement totaling in excess of $900m as part of its de-leveraging plan designed to pay down debt, preserve financial flexibility, streamline its portfolio and improve cash flow.
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The company has signed an agreement to sell its calcium chloride business to a strategic chemical industry buyer for a value in excess of $210m. Employees of the Calcium Chloride business will transit to the buyer’s business at the closing of the transaction.
The company has also signed definitive agreement for the sale by Dow Europe and Dow Benelux of their interests in Total Raffinaderij Nederland NV to Valero Energy Corporation for approximately $725m.
The transaction includes assets from Ludington, Michigan operations, Dow-owned calcium chloride terminals and other nationally known brands. The transaction is expected to close by the end of June 2009.
Sales of non-strategic assets announced so far this year now total in excess of $2.6 billion, well ahead of the Company’s original divestment plan.
Andrew N. Liveris, chairman and CEO at Dow, said: These asset sales at valuations that result in significant de-leveraging represent another major step in the acceleration of Dow’s divestiture and de-levering plans despite a challenging economic environment.
We are delivering on our commitments ahead of schedule and creating the momentum needed to strengthen our financial position and create a faster path to earnings growth.