Early on Friday, The Dow Chemical Company (DOW
) announced that it has signed a definitive agreement to divest its global Polypropylene Licensing & Catalysts business to W.R. Grace & Co. for a sale price of $500 million.
Dow had previously announced its plans to divest the business in March 2013, as part of its plan to be proactive in its commitment to divest nearly $1.5 billion in assets by mid to late 2014.
The proceeds from the sale will go to pay to shareholders, reduce debt, and fund growth. The transaction is expected to close by the end of 2013.
"Today’s announcement is another clear demonstration of Dow’s rigorous focus on selectively shifting our portfolio away from assets that are no longer a strategic fit and optimizing their value," said Andrew N. Liveris, Dow’s chairman and chief executive officer. "Our accelerated strategy is focused on narrowing our market participation and preferentially funding our select growth businesses with strong competitive positions in attractive markets such as electronics, water, packaging and agricultural sciences. We are planning further proactive divestments in the next 12 months in our relentless pursuit of rewarding shareholders."
Dow Chemical shares were up a fraction during pre-market trading on Friday. The stock is up 24.96% year-to-date.
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