On Thursday, Dow Inc. declared its plans to sell its unit specializing in flexible packaging laminating adhesives, part of Dow's Packaging & Specialty Plastics division, to Arkema. The agreed price for the deal is $150 million, which is approximately ten times the estimated EBITDA for 2024.
Jim Fitterling, CEO and chairman of Dow, stated that the proceeds from this sale will contribute to their long-term sustainable growth strategies, namely 'Decarbonize & Grow' and 'Transform the Waste.' Through these strategic moves, the company aims to realize an increase of more than $3 billion in annual earnings by 2030.
According to the terms of the agreement, Arkema will acquire five manufacturing plants based in Italy, the United States, and Mexico. These sites produce Solvent-Based Laminating Adhesives, Solventless Laminating Adhesives, and Heat Seal Coatings products.
The transaction is anticipated to achieve closure by the end of 2024, subject to approval from regulatory authorities.
