Midland, Mich. & Boston--The Dow Chemical Company and Bain Capital Partners, a global private equity firm, has announced that they have closed the sale of Dow’s Styron Division to an affiliate of Bain Capital. Dow has elected to retain a 7.5 percent equity position in Styron, which is now a privately held, global materials company. Also included in the transaction are several long-term supply, service and purchase agreements between Dow and Styron that will generate substantial additional value for both companies.
“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.” said Andrew N. Liveris, Dow Chairman and Chief Executive Officer.
"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."
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Styron is positioned as a leading materials company with global reach and a unique product portfolio, bringing together plastics, rubber and latex businesses that share feedstocks, operations, customers and end users. Styron has approximately $3.7 billion in revenue (based on 2009 data), with manufacturing facilities at 20 locations in 13 countries around the world. Styron has approximately 2,000 employees based in 30 countries worldwide.
Businesses and products included in this transaction are: Styrenics – Polystyrene (PS), acrylonitrile butadiene styrene (ABS), styrene acrylonitrile (SAN) and expandable polystyrene (EPS); Emulsion Polymers (paper and carpet latex); Polycarbonate (PC) and Compounds & Blends; Synthetic Rubber; Automotive Plastics; and some styrene monomer assets.
Dow announced its plan to form the Styron Division and explore divestiture options in July 2009. A definitive agreement between Dow and Bain Capital Partners was signed and announced in March 2010.
Polycarbonate (PC) is an engineering thermoplastic used in applications such as optical media, electrical and lighting. Styrenic plastics (polystyrene, ABS and SAN) are well known for their performance in an array of applications from packaging and food service, to large appliances, portable appliances, consumer electronics, automotive and building and construction. Synthetic rubber is used in a broad portfolio of products from tires to hoses, conveyor belts and footwear, to specialized high- performance elastomers. Expandable polystyrene (EPS) is typically used in rigid foam products such as heat insulation, packaging, impact sound insulation and drainage. SB and SA Latex are used in paper/paperboard and flooring applications. Automotive plastics are used in many different automotive applications such as instrument panels, mid consoles, door panels, interior trim, seat structures and bumpers.
For Information: The Dow Chemical Company www.dow.com
For Information: Bain Capital, LLC www.baincapital.com
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