Dow To Sell Certain U.S. Gulf Coast Marine And Terminal Operations And Assets In $620 Mln Deal
Chemical company Dow Inc. (DOW) announced Monday that it has entered into a definitive agreement to sell certain U.S. Gulf Coast marine and terminal operations and assets to Vopak Industrial Infrastructure Americas for $620 million.
The sale includes marine and storage terminal operations and assets at Dow’s sites in Plaquemine and St. Charles, Louisiana, and Freeport, Texas.
The transaction is expected to close in the fourth quarter of 2020, subject to customary regulatory approvals and other closing conditions in the United
States and the European Union.
The company will continue normal operations throughout the divestment process.
Vopak is a joint venture of tank storage company Royal Vopak and BlackRock’s Global Energy & Power Infrastructure Fund. It is already a key logistics partner at several Dow locations globally.
Further, Dow and Vopak have entered into long-term service agreements, ensuring reliable and cost-advantaged services for existing Dow businesses at the in-scope sites.
Jim Fitterling, chairman and chief executive officer of Dow, said, “The transaction will enable Dow to deploy cash towards value-enhancing opportunities in our core businesses consistent with our capital allocation priorities including ensuring safe and reliable operations and paying down additional debt.”
In the deal, Goldman Sachs acted as financial advisor to Dow, and Mayer Brown provided legal support.
Further, Dow said it continues to evaluate its ownership of non-revenue-generating assets across its global portfolio as announced in July. The company then had announced a signed agreement to sell its rail infrastructure and assets at six North American sites.
Dow also said earlier that it is taking other actions to exit non-competitive assets.
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