Boston, MA 10/03/2014 (wallstreetpr) – The Dow Chemical Company (NYSE:DOW) disclosed that it would be selling three of its businesses to realize $ 2 billion. The company is anticipating signing of the agreements by the end of the current year. The deal is expected to close by early next year.
Disinvestment
The company has updated on its divestiture and portfolio management actions thus illustrating its earlier commitment of its ongoing efforts to create valuation for shareholders, its statement revealed. As part of it, The Dow Chemical Company (NYSE:DOW) has decided to sell $4.5 – $6.0 billion of businesses and assets, which were non-strategic. The objective was to complete the process by the end of the next year.
As part of the divestiture process, the company has confirmed that it was actively engaged in marketing its Sodium Borohydride, AgroFresh and Angus Chemical Company businesses for sale. The company hopes to realize $2 billion from the sale of these businesses.
Completes Rail Car Fleet Sale
The company indicated that it has completed the divestiture of a major portion of its rail car fleet in North America. As a result, it would move towards lease-structure for its future needs. The sale fetched the company close to $450 million in cash that would be used for alternative capital to be identified.
The Dow Chemical Company (NYSE:DOW) said that it completed sale of assets totaling $1.3 billion as of now. The company estimated to realize $4.5 – $6.0 billion from the sale previously. It expressed its confidence now to achieve a sale of these businesses at the higher of its earlier predictions.
Sale Of Assets From 2009
The Dow Chemical Company (NYSE:DOW) disclosed that the entire process of divestiture of non-strategic businesses would result in realizing over $14 billion. The process of disposing of non-strategic units was initiated in 2009. However, it also indicated an additional $18 billion of revenue through acquisitions and organic route of R&D. These actions would result in accelerated commitment to go deeper into attractive end-markets.
