Dow Chemicals Finalizes $150 Million Sale to Strategic Partner Arkema
On December 2, 2024, Dow (NYSE: DOW), a global leader in materials science, announced the successful completion of its previously disclosed sale of the flexible packaging laminating adhesives business for a total of $150 million. This important transaction was made with Arkema, a recognized leader in specialty materials, and represents a strategic alignment with Dow’s long-term growth objectives.
The decision to sell this segment is rooted in Dow's ongoing commitment to refine its focus toward core, high-value downstream markets. This move not only consolidates Dow's strengths but also enhances its operational efficiency. The business sold includes various facilities located in Italy, the United States, and Mexico, featuring a comprehensive range of solvent-based and solventless laminating adhesives, as well as heat seal coating products.
The proceeds from this significant sale are earmarked to bolster Dow’s capital allocation strategies. This includes prioritizing investments that are expected to drive growth and deliver enduring value to its shareholders. Dow’s intention with this sale, which follows its acquisition earlier in 2024 of Circulus, a pioneering mechanical recycler, illustrates its dedication to aligning its portfolio with growth strategies and promoting sustainability through circularity platforms.
Karen S. Carter, president of Packaging & Specialty Plastics at Dow, expressed satisfaction in announcing the completion of this transition. She stated, “This divestiture not only strengthens our core business but also positions us for future growth and innovation. By honing in on our key strengths, we can provide greater value to our customers and stakeholders.”
Despite this divestiture, Dow retains crucial business components such as its water-based laminating adhesives and acrylic adhesives, maintaining them as essential parts of its overarching growth and sustainability strategies.
As one of the industry's frontrunners, Dow Chemical Company continues to serve a multitude of high-growth markets, including packaging, infrastructure, mobility, and consumer applications. With a global presence spanned across 31 countries and a workforce of approximately 35,900 individuals, Dow recorded around $45 billion in sales for the year 2023. Dow’s comprehensive strategy melds its extensive manufacturing capabilities, innovative approaches, and firm commitment to sustainability to ensure profitable growth while paving the way for a sustainable future.
For more information on Dow’s operations and ambitions, visit their website at www.dow.com. The completion of this sale marks a pivotal step in Dow’s journey towards becoming the most innovative, customer-focused, inclusive, and sustainable materials science company on the globe.
The decision to sell this segment is rooted in Dow's ongoing commitment to refine its focus toward core, high-value downstream markets. This move not only consolidates Dow's strengths but also enhances its operational efficiency. The business sold includes various facilities located in Italy, the United States, and Mexico, featuring a comprehensive range of solvent-based and solventless laminating adhesives, as well as heat seal coating products.
The proceeds from this significant sale are earmarked to bolster Dow’s capital allocation strategies. This includes prioritizing investments that are expected to drive growth and deliver enduring value to its shareholders. Dow’s intention with this sale, which follows its acquisition earlier in 2024 of Circulus, a pioneering mechanical recycler, illustrates its dedication to aligning its portfolio with growth strategies and promoting sustainability through circularity platforms.
Karen S. Carter, president of Packaging & Specialty Plastics at Dow, expressed satisfaction in announcing the completion of this transition. She stated, “This divestiture not only strengthens our core business but also positions us for future growth and innovation. By honing in on our key strengths, we can provide greater value to our customers and stakeholders.”
Despite this divestiture, Dow retains crucial business components such as its water-based laminating adhesives and acrylic adhesives, maintaining them as essential parts of its overarching growth and sustainability strategies.
As one of the industry's frontrunners, Dow Chemical Company continues to serve a multitude of high-growth markets, including packaging, infrastructure, mobility, and consumer applications. With a global presence spanned across 31 countries and a workforce of approximately 35,900 individuals, Dow recorded around $45 billion in sales for the year 2023. Dow’s comprehensive strategy melds its extensive manufacturing capabilities, innovative approaches, and firm commitment to sustainability to ensure profitable growth while paving the way for a sustainable future.
For more information on Dow’s operations and ambitions, visit their website at www.dow.com. The completion of this sale marks a pivotal step in Dow’s journey towards becoming the most innovative, customer-focused, inclusive, and sustainable materials science company on the globe.
Topics Consumer Products & Retail）
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