An affiliate of private investment firm Bain Capital Partners, Inc. has acquired Styron Corp., a manufacturer of styrenes and polycarbonates, from The Dow Chemical Company.
Dow has elected to retain a 7.5 percent equity position in the materials firm and said the deal, first announced in March, will help reduce debt and free up capital and resources.
Included in the transaction are several long-term supply, service and purchase agreements.
“The Styron divestiture is another major step in Dow’s transformation and a strong example of our disciplined approach to portfolio management and business prioritization,” said Andrew N. Liveris, Dow Chairman and Chief Executive Officer. “With the close of this transaction, we have exceeded our goal of divesting $5 billion of non-strategic assets, and we have done so in just five quarters. These divestitures have enabled Dow to both reduce debt and liberate capital and resources for Dow’s higher growth, higher margin businesses.”
"We are excited to see Styron emerge as an independent company. The Styron management team, together with our new partners at Dow, have worked tirelessly to provide Styron with the capabilities to pursue its global growth strategy," said Steve Zide, a Managing Director at Bain Capital. "We are confident that the management team led by Chris Pappas, and all of Styron's employees around the world, will further expand and strengthen the Company's leadership positions with a continued commitment to excellent service to customers and business partners."
Dow is a manufacturer and seller of chemicals, plastic materials, agricultural and services, and other specialized products and services.
Edited by Ben Lobel
SOURCE: DOW
Dow has elected to retain a 7.5 percent equity position in the materials firm and said the deal, first announced in March, will help reduce debt and free up capital and resources.
Included in the transaction are several long-term supply, service and purchase agreements.
“The Styron divestiture is another major step in Dow’s transformation and a strong example of our disciplined approach to portfolio management and business prioritization,” said Andrew N. Liveris, Dow Chairman and Chief Executive Officer. “With the close of this transaction, we have exceeded our goal of divesting $5 billion of non-strategic assets, and we have done so in just five quarters. These divestitures have enabled Dow to both reduce debt and liberate capital and resources for Dow’s higher growth, higher margin businesses.”
"We are excited to see Styron emerge as an independent company. The Styron management team, together with our new partners at Dow, have worked tirelessly to provide Styron with the capabilities to pursue its global growth strategy," said Steve Zide, a Managing Director at Bain Capital. "We are confident that the management team led by Chris Pappas, and all of Styron's employees around the world, will further expand and strengthen the Company's leadership positions with a continued commitment to excellent service to customers and business partners."
Dow is a manufacturer and seller of chemicals, plastic materials, agricultural and services, and other specialized products and services.
Edited by Ben Lobel
SOURCE: DOW