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Dow Chemical To Sell Texas Assets To Arkema

Mon, 08/03/2009 - 10:17am

MIDLAND, Mich. (AP) — Dow Chemical Co. is selling a Texas acrylic acid and esters plant and a specialty latex business to Arkema for $50 million.

The sale announced Monday involves an acrylic acid and esters plant in Clear Creek, Texas, and the specialty latex business. It's expected to close in the fourth quarter pending approval of the Federal Trade Commission.

Dow Chemical spokesman Bob Plishka said the purchase price is equal to the full value of the assets based on 2009 earnings before interest, taxes, depreciation and amortization, which is projected to be negative by approximately $20 million.

That means the sale will boost its results immediately upon approval, he said.

The Midland, Mich.-based chemical manufacturing giant is under FTC mandate to divest some assets it acquired when it purchased Rohm & Haas Co.

Dow completed the $16.5 billion buyout of the specialty chemicals manufacturer in April and has reduced debt through selling assets, job cuts and factory closures.

CEO Andrew Liveris said last week the company reached agreements to sell about $3.3 billion in assets in the second quarter, and has a list of potential assets to divest of up to $26 billion.

Shares of Dow Chemical rose $1.15, or 5.4 percent, to $22.31 in morning trading.

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