#United States #Midland #Dow Chemical #Macquarie Asset #Diamond Infrastructure

Dow and Macquarie Asset Management Unveil Strategic Investment Partnership

In a major development aimed at enhancing its infrastructure capabilities, Dow (NYSE: DOW) has finalized a significant strategic partnership with Macquarie Asset Management. This move sees Macquarie acquire a 40% equity stake in Dow's dedicated infrastructure entity, Diamond Infrastructure Solutions. The transaction is expected to empower Dow's growth strategy while reinforcing operational stability across its infrastructure portfolio.

Key Details of the Partnership

On May 1, 2025, Dow announced that Macquarie Asset Management, a recognized leader in managing infrastructure and energy assets, has purchased a minority equity stake in Diamond Infrastructure Solutions. This new entity boasts a portfolio of critical infrastructure assets located along the U.S. Gulf Coast.

Jim Fitterling, Dow's Chairman and CEO, highlighted that this partnership has been in the works for several years, emphasizing its strategic importance. With Macquarie's involvement, Diamond Infrastructure Solutions is positioned to enhance its operational efficiencies while focusing on growth and customer engagement.

Financial Aspects

The initial cash proceeds from the sale amount to approximately $2.4 billion. Macquarie has an option to increase its equity stake to 49% within six months for an additional investment of around $600 million, potentially raising total cash proceeds to approximately $3 billion for Dow. This infusion of capital will be crucial for supporting Dow's balanced capital allocation strategy, facilitating further advancements in its operational framework.

The Vision for Diamond Infrastructure Solutions

Established in 2023 and formally announced in late 2024, Diamond Infrastructure Solutions aims to streamline operations and accelerate customer acquisition efforts. In the months leading up to this partnership, the Diamond leadership team has diligently worked on a comprehensive growth strategy, focusing on key areas such as safety, employee alignment, and proactive customer engagement.

Maintaining control as the majority owner, Dow ensures the continuity and reliability of operations that its existing customers depend on, while also promoting profitable growth for Diamond—benefiting both Dow and Macquarie's financial outcomes in the long run.

The Broader Context

This partnership marks a pivotal step in Dow's ongoing strategy to optimize value from non-operational assets and enhance financial performance across its entire global portfolio. The deal signals Dow's commitment to growth while ensuring robust operational management at its infrastructure sites.

Financial advisory firms Citi and Goldman Sachs played instrumental roles during this transaction, with Linklaters providing legal support to ensure compliance and strategic alignment throughout the process.

About Dow

Dow is a leading materials science company, serving essential markets such as packaging, infrastructure, mobility, and consumer applications. Operating in 30 countries and employing around 36,000 people, Dow generated approximately $43 billion in sales in 2024. Through innovations and sustainable practices, it aims to maintain its position at the forefront of the materials science industry, ultimately contributing to a sustainable future.

For additional insights and updates about the company and its ambitions, readers can visit www.dow.com.