Dow to Sell Global Polypropylene Business

The Dow Chemical Company (NYSE: DOW) announced today that it has signed a definitive agreement under which Dow's global Polypropylene business will be divested to Braskem for a total enterprise value to Dow of $340 million, comprised of $323 million cash purchase price plus other cash and contingency assumptions of $17 million.

Enterprise value multiple to Dow is 6.7x EBITDA(1). Dow expects to report a gain on this divestment, and the transaction is expected to close by the end of the third quarter 2011, pending regulatory approval. In addition to this transaction, the two companies will continue to evaluate potential future collaborations on growth opportunities in connection to their strategies.

"This divestiture is yet another strong example of Dow's disciplined and ongoing approach to portfolio management and is directly aligned with our strategy to transform our Performance Plastics franchise to focus on downstream, technology-differentiated solutions," said Andrew N. Liveris, Dow's Chairman and Chief Executive Officer. "This business has delivered historic margins that do not meet our expectations moving forward and is no longer core to Dow's strategy. We are shifting our Plastics portfolio from a commodity focus to that of a performance focus. This divestment is directly in line with that strategy, and allows us to continue to focus on our three main priorities: retiring debt, remunerating shareholders and investing in our innovation agenda so that we deliver consistent earnings growth."

The divestiture includes Dow's polypropylene manufacturing facilities at Schkopau and Wesseling, Germany, and Freeport and Seadrift(2), Texas. Also included are inventory, business know-how, certain product and process technology and customer contracts and lists.

Approximately 200 employees are expected to transition employment status to Braskem at transaction close. Dow's Polypropylene Licensing & Catalyst business and related catalyst facilities are excluded from the scope of the transaction.

Under terms of the purchase agreement, Braskem will honor customer and supplier contracts and related agreements. Both companies are committed to working together for a seamless transition for all stakeholders.


Please use one of the following formats to cite this article in your essay, paper or report:

  • APA

    Dow Chemicals. (2019, February 09). Dow to Sell Global Polypropylene Business. AZoM. Retrieved on August 12, 2020 from

  • MLA

    Dow Chemicals. "Dow to Sell Global Polypropylene Business". AZoM. 12 August 2020. <>.

  • Chicago

    Dow Chemicals. "Dow to Sell Global Polypropylene Business". AZoM. (accessed August 12, 2020).

  • Harvard

    Dow Chemicals. 2019. Dow to Sell Global Polypropylene Business. AZoM, viewed 12 August 2020,

Tell Us What You Think

Do you have a review, update or anything you would like to add to this news story?

Leave your feedback