Dow Announces Divestiture of its Powder Coatings Business to Akzo Nobel N.V.
Midland, MI - November 12, 2009
The Dow Chemical Company (NYSE: DOW) announced today that it has signed an agreement to sell its Powder Coatings Business to Akzo Nobel N.V. (AKZA: NA), a leading producer of paints and coatings, based in Amsterdam, The Netherlands. Terms of the transaction were not disclosed.
The transaction is expected to close within the second quarter of 2010, subject to customary closing conditions, including regulatory approvals.
Dow will use the proceeds from the transaction to reduce debt, consistent with Dow’s de-leveraging plan.
“The sale of this business further accelerates Dow's de-leveraging plan, and will contribute to Dow's ability to achieve its financial targets ahead of schedule,” said Andrew N. Liveris, Dow chairman and chief executive officer. “In addition, this divestiture is part of our ongoing process to sell non-core assets, and we are now on target to yield more than $3.5 billion of gross proceeds from these activities. We will continue our practice of active portfolio management to improve profitability and focus resources on higher growth, higher margin opportunities.”
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Note: This press release contains forward-looking statements that involve risks and uncertainties that may affect the Company's operations, markets, products, services, prices and other factors as discussed in filings with the Securities and Exchange Commission. These risks and uncertainties include, but are not limited to, economic, competitive, legal, governmental and technological factors. Accordingly, there is no assurance that the Company's expectations will be realized. The Company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by securities and other applicable laws.
For Editorial Information:
Bob Plishka
The Dow Chemical Company
989-638-2288