News - full story

DOW Chemical has sold it styrenics unit, Styron, to private equity firm Bain Capital for $1.63b.

The definitive agreement was signed on 2 March 2009, under which Dow has an option to receive 15% of Styron’s equity as part of the sale consideration, and includes several long–term supply, service and purchase agreements. 

Styron is expected to generate a revenue of $3.5b in 2010, from a portfolio of plastics, rubber and latex businesses, which all share feedstocks, operations, customers and end users. Styron’s products include acrylonitrile butadiene styrene (ABS), emulsion polymers (paper and carpet latex), synthetic rubber, automotive plastics and INSPiRE performance polymers.

"We are committed to further focusing our portfolio by shedding non-strategic assets that can no longer compete for growth resources inside the company, and in the process generating funds for further debt reduction and liberating resources for Dow's higher growth, higher margin portfolio of technology, market-driven businesses," says Dow chairman and ceo Andrew Liveris.

The deal should be complete by August 2010.